Co-founders of the analytics company Glassnode, Jan Happel and Yann Allemann, often known on social media as Negentropic, are indicating that Bitcoin (BTC) may be due for a correction after its recent spike. The pair believes that there will soon be a change in Bitcoin’s trajectory because prices are rising and feelings are strong.
Happel and Allemann determine that before Bitcoin resumes its upward trajectory in the longer-term bull market, $58,000 is a likely support level. The recent increase of Bitcoin from $38,000 in late January to $72,000 in early March is cited by them as evidence of a possible corrective phase. Their study indicates that there has been a three-wave structure to BTC’s climb, indicating an impending cooling-off period.
Glassnode’s analysis includes observations on Bitcoin’s Relative Strength Index (RSI), noting a divergence between the RSI trend and BTC’s price movement. Traditionally, such divergences hint at possible reversals in price trends. However, economist Alex Krüger offers a contrasting perspective, foreseeing BTC hitting $85,000 before potentially retreating to $55,000. Despite differing views, both analyses reflect the heightened volatility and speculative fervor in crypto markets.
Krüger’s broader outlook aligns with a supercycle narrative for Bitcoin, anticipating shallower dips amidst sustained bullish momentum. While acknowledging the possibility of short-term corrections, Krüger emphasizes the macroeconomic factors supporting Bitcoin’s upward trajectory, including ETF inflows. His price projections suggest a potential rally to $120,000, followed by a pullback to $85,000, reflecting the dynamic nature of cryptocurrency markets. At time of writing, BTC is trading at $73,089.