Founders of the blockchain analysis platform Glassnode, Jan Happel and Yann Alleman, anticipate that Bitcoin (BTC) may return to six-figure valuations. They attribute this possibility to the dynamics of liquidity flows and the strategies of market participants in taking profits.
What Past Trends Reveal About Bitcoin’s Future?
The Glassnode founders draw parallels between Bitcoin’s current market conditions and those experienced at the end of 2020. They note that between December 2020 and February 2021, liquidity outflows were accompanied by price corrections, even as network growth remained steady during that period.
Can Reduced Profit-Taking Propel Bitcoin Prices Upward?
A report from Swissblock highlights the importance of profit-taking stabilizing for Bitcoin’s potential price rise. Happel indicated that profit-taking remains prevalent above the $90,000 mark, but the intensity of selling pressure is beginning to ease. Alleman emphasized the need for stabilization in profit-taking to prevent large sell-offs that cause abrupt market shifts.
Currently, Bitcoin is trading at $92,077, reflecting a daily decrease of 1.7%. However, the Glassnode founders maintain that an increase in Bitcoin’s price could be on the horizon if liquidity flow improves and profit-taking diminishes.
- Bitcoin’s past market conditions may repeat themselves, indicating potential future trends.
- Stabilization in profit-taking is crucial for an upward price trajectory.
- Improved liquidity flow could also support a price increase for Bitcoin.
