The co-founders of Glassnode, Jan Happel and Yann Allemann, believe that Bitcoin’s recent upward movement could initiate a ″orrowed an asset at a lower price are compelled to buy it back at a higher price due to changing market dynamics, further fueling upward momentum.
“‘Liquidity is KEY.’
1. Bitcoin Evaluation: Bitcoin soared to $42,200, bolstering long positions with a neutral momentum.
2. Liquidity Void: The price is ascending to close the liquidity void above $42,000, suggesting possible volatility. Around $659 million in liquidations transpired.
Prospects: Bullish momentum may trigger liquidations of $1 billion in short positions, potentially driving the market upward′″
The founders suggested that Bitcoin might be forming a descending wedge pattern, a classic technical analysis pattern signaling potential bullish reversals. This pattern features lower highs and lower lows, forming a wedge shape on the chart. As the pattern evolves, the gap between highs and lows diminishes, indicating weakening selling pressure. A breakout above the upper trend line of the wedge is typically viewed as bullish. At the time of writing, Bitcoin is trading at $43,436, showing a slight increase over the past 24 hours.
