Jan Happel and Yann Alleman, founders of blockchain analysis platform Glassnode, Bitcoin $93,885.9He predicted that (BTC) could reach six-digit values again. Investors expect that liquidity flows and market participants’ profit-taking strategies will shape this potential.
Comparison with the Past and Market Dynamics
Founders of Glassnode and Swissblock compared the current state of Bitcoin with that of late 2020. Between December 2020 and February 2021, the liquidity outflow occurred simultaneously with the price correction. However, network growth had continued during this period.
According to the statements made, liquidity flow plays an important role behind the price increase of BTC. Negentropic stated that a rise in BTC prices is possible as long as liquidity flows back into the market and network growth continues.
Increase in Liquidity and Decrease in Profit Taking May Support the Price
In an article shared by Swissblock, it was emphasized that profit taking should calm down for Bitcoin to rise again. Jan Happel said that profit taking above $90,000 is still continuing, but this selling pressure is gradually decreasing. Yann Alleman stated that profit taking should become stable in order for the price to gain momentum. It was also emphasized that large sales volumes that create sudden increases should be prevented.
Currently, BTC is trading at $92,077, down 1.7% on the day. However, Glassnode founders predict that the price of Bitcoin may rise again in cases where liquidity flow and profit taking decreases.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
