Bitcoin Unlikely to Plunge to $23,000, Predicts Glassnode Co-Founder – Here’s Why
Glassnode Co-Founder, Negentropic, believes the current macro environment is favorable for Bitcoin, ruling out a drastic fall back to $23,000.
As a blockchain expert, I find the current outlook for Bitcoin (BTC), as seen through the eyes of the Glassnode Co-Founder, Negentropic, rather intriguing. Negentropic paints a bullish picture for Bitcoin, stating that the prevailing macroeconomic conditions provide an ideal platform for riskier assets like Bitcoin to flourish.
A Favorable Macro Environment for Bitcoin
Negentropic draws attention to the weakening U.S. Dollar Index (DXY), a trend which, in his view, signals good news for Bitcoin. It’s important to understand that Bitcoin, like many other cryptocurrencies, often demonstrates an inverse correlation with the DXY. As the DXY ebbs, Bitcoin tends to thrive.
Simultaneously, Negentropic points out that the Nasdaq 100 is on the cusp of reaching its all-time high, which it previously hit in late 2021. Why does this matter to Bitcoin? Historical data suggest a telling pattern: Bitcoin typically gains momentum around 80 days after the Nasdaq achieves significant levels. This usually initiates with the Nasdaq cooling off and capital shifting towards riskier assets such as Bitcoin. When the rotation completes, the Nasdaq often surges once more, acting as a catalyst for Bitcoin’s ascent.
But what would confirm that Bitcoin has hit its local bottom, according to Negentropic? He suggests we should watch for Bitcoin maintaining above the $29,300 mark and pushing to challenge the $29,700 level. A significant upside marker would be reclaiming the $30,400 point, our previous pivot, which could probe the resistance zone of $30,800-$31,000.
Intriguingly, Negentropic downplays the earlier significant volumes around the $23,000 mark. In his view, this doesn’t debunk the bullish hypothesis for Bitcoin. He asserts that multiple factors currently bolster Bitcoin’s upward trajectory, making a dramatic crash back to $23,000 or lower less probable.
At the time of writing, Bitcoin stands at $29,796. It’s worth noting that Bitcoin, the market-leading crypto asset, has experienced an upward shift of over 2% within the past 24 hours. These statistics, coupled with Negentropic’s analysis, offer a compelling narrative for Bitcoin’s potential trajectory in the near future.
