The co-founders of blockchain analytics platform Glassnode reveal how Bitcoin (BTC) can recover six figures and more.
Glassnode and Swissblock co-founders Jan Happel and Yann Alleman, who share the social media name Negentropic, first compare BTC’s current situation with a similar scenario a few years ago.
“Let’s look at the period from December 2020 to February 2021, which corresponds to a similar cycle phase and comparable price movements.
At this point, the liquidity outflow coincided with a price correction, but network growth continued. As the price stabilized and a new inflow of liquidity began, the price also rebounded sharply.”
According to Negentropic, liquidity could be the deciding factor for a Bitcoin price increase.
“This suggests that we could potentially see a price increase once liquidity flows back into the market and the price does not fall to lower levels as long as network growth remains at bullish levels.”
In an accompanying Swissblock post, the market research firm suggests that profit-taking must subside before BTC can rise again.
“Took profits over $90,000 and almost…”
