Glassnode co-founders, Jan Happel and Yann Allemann (Negentropic), are raising concerns about Bitcoin’s future after it briefly topped $100,000. Despite the milestone, they’re seeing warning signs.
A Weakening Market?
Their analysis centers on the Bitcoin Fundamental Index (BFI). This index tracks various market factors like wallet activity and transaction volume. A drop in the BFI often precedes market corrections, according to Negentropic. They point to the BFI’s performance earlier this year as a successful predictor of a significant correction. While they acknowledge the bull market still has potential, they’re closely monitoring the BFI for further confirmation.
Profit-Taking Hesitation
Before Bitcoin hit $100,000, Negentropic noted that many traders were hesitant to take profits. They were holding out for even higher prices, suggesting a consolidation period before a potential surge. The belief was that once Bitcoin firmly established itself above $100,000, a significant price increase would follow.
Current Market Situation
At the time of writing, Bitcoin is trading slightly below $97,000, down around 7% from its all-time high. This drop, combined with the BFI warning, adds fuel to the concerns about a potential correction.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always conduct your own research before making any investment decisions.
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