Glassnode Co-Founders Issue Bitcoin Alert, Say BTC To Fall if ‘Conditions Don’t Improve’
The co-founders of the market intelligence platform Glassnode are warning that Bitcoin (BTC) may decline if two main conditions don’t start improving.
In a new thread on the social media platform X, Glassnode and Swissblock co-founders Jan Happel and Yann Alleman – who together share the handle Negentropic – say that Bitcoin is at risk of declining nearly 4% from its current value in the near term.
According to the analysts, weakening market liquidity and a declining network growth metric, which measures the number of users and transactions, are flashing bearish signals for the flagship crypto asset.
“Bitcoin update: after a hotter-than-expected inflation report, BTC grabbed liquidity at $94,000, peaked at $98,000, but is now pulling back to $96,000. Weak liquidity plus declining network growth equals warning signs. If conditions don’t improve, a breakdown to $92,000 could be next. Stay sharp!”
However, the analysts say if Bitcoin can hold key support levels in the mid-$90,000 range it may set the stage for a breakout.
“Another sign that Bitcoin may have found a bottom before a push toward $100,000 is the regime shift, showing early signs of a trend change. Choppy price action could continue, even with a retest of $95,000, but as long as this zone holds as support, BTC could solidify its move into the bullish quadrant.”
The analysts also say that the Bitcoin Risk Signal suggests a market bottom may be forming.
The Bitcoin Risk Signal, based on a “set of proprietary indicators, including Bitcoin price data, on-chain data and a selection of other trading metrics,” gauges whether BTC is at risk of a major drawdown in price.
“A key sign BTC may have bottomed: the Risk Index, which spiked recently, is now declining. If risk doesn’t rise post-volatility, it could be the strongest confirmation that the bottom is in!”
Bitcoin is trading for $95,561 at time of writing, flat on the day.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Blue Planet Studio/Chuenmanuse
