Is Bitcoin Ready For A Breakout? Glassnode Co-Founder Weighs In

Christian Encila

1 year ago

3 mins read

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Bitcoin, the world’s largest cryptocurrency by market capitalization, has been in a consolidation phase for the past few weeks. While this may seem like a period of relative stability, on-chain intelligence platform Glassnode co-founder Yann Allemann suggests that it could indicate an impending price movement.

In the past, similar consolidation periods have often been followed by price swings, and investors are closely watching for any signs of where the market might be headed.

While some investors may be nervous about the recent consolidation, others see it as an opportunity to buy in before the next big move. As the market awaits the next Bitcoin price action, analysts and enthusiasts alike are speculating on what might come next for the leading cryptocurrency.

Factors Indicating A Positive Outlook For Bitcoin Price

Amidst the current state of the Bitcoin market, several factors have been identified by Allemann on Twitter, which contribute to the prediction of a positive future for the cryptocurrency. These factors include the depletion of short-sellers’ resources, the reinforcement of support levels, and the expectation of an overall bullish trend.

Shorts getting exhausted the longer #BTC holds $26.8k… big move coming

The price explodes whenever #Bitcoin consolidates below the MA. Bands are already tight. The clock is ticking.https://t.co/t20rwaMxPB pic.twitter.com/5UG6UB9KQn

— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) May 17, 2023

Bitcoin’s price has been fluctuating within the range of $26,500 and $27,100, a period characterized by the prevalence of “extreme fear” sentiment among market participants.

At the time of writing CoinGecko shows Bitcoin’s price stands at $27,372, reflecting a modest 1.9% increase over the past 24 hours. However, it is worth noting that the cryptocurrency has also experienced a slight decline of 0.2% over the course of the previous seven days.

Source: Coingecko

Nonetheless, Allemann highlights that this pattern often serves as a precursor to upward movements in the market. One compelling observation is the resilience of Bitcoin’s price in maintaining levels above the 50 and 200 Simple Moving Averages (SMAs), which now serve as robust support levels that have proven their strength through five separate tests.

These technical indicators not breaking down further signify a positive trend in the market and add to the overall optimism surrounding Bitcoin’s future performance.

Debt Ceiling Uncertainty Could Impact Bitcoin Price

Another factor that could potentially impact Bitcoin’s price in the coming days is the ongoing debate surrounding the debt ceiling in the United States.

The debt ceiling is a limit on the amount of money that the US government can borrow to fund its operations. If the government fails to raise the debt ceiling, it could result in a default on its debt obligations, which could have serious consequences for the global financial system.

Crypto total market cap barely unchanged at $1.10 trillion. Chart: TradingView.com

The uncertainty surrounding the debt ceiling debate could lead to increased volatility in the financial markets, including the cryptocurrency market. Historically, Bitcoin has demonstrated a positive correlation with the stock market, particularly during times of economic uncertainty.

Therefore, any adverse effects on the stock market resulting from the debt ceiling debate could potentially spill over into the cryptocurrency market and cause significant price fluctuations.

-Featured image from Bitcoinik

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.