As of Jan. 29, Negentropic, one of the founders of Glassnode, shared some thoughts on the current state of the Bitcoin market.
He stresses how crucial liquidity is for BTC prices and that the current rise above $42,200 has made it possible for people to open long positions, indicative of a neutral impulse.
Negentropic sees the Bitcoin price rising to fill the liquidity gap above $42,000, which suggests that the price could change quickly. Notably, liquidations worth about $659 million have already happened.
After looking at the situation, he thinks that positive momentum could lead to the liquidation of another $1 billion worth of short positions, which could cause the market to move up.
https://twitter.com/Negentropic_/status/1751916305249169753?ref_src=twsrc%5Etfw” target=”_blank” rel=”noopener
If things go well, there could be a “short squeeze,” which happens when the price of an asset goes up and many short buyers have to get out of their positions.
Negentropic’s bullish view fits with a drop in selling pressure in the Grayscale Bitcoin Trust (GBTC) from investors who are cashing out. GBTC withdrawals have slowed down recently, which happened at the same time that China’s central bank put $140 billion into the economy.
The co-founder of Glassnode mentioned in an earlier tweet that a liquidity surge had begun because China wants to keep its markets stable by adding a lot of liquidity. He thinks this could be the spark that drives the cryptocurrency and stock markets into the first half of 2024.
According to the most recent report, Bitcoin hit a high point of $42,839 on January 28. Since then, it has slightly dropped to around $42,000 at press time. The current rise in price is part of a recovery rally that began last week after a drop to $38,500.
Markus Thielen from 10x Research thinks that Bitcoin prices could hit $50,000 by the end of the first quarter. This makes the market even more optimistic.
RXR.Lab Highlights: The world’s first crowdfunding and lottery platform RXR.Lab will be grand launched on…
XRP continues to drift lower, with its price struggling to stay afloat above $2.15. After…
Sony Electronics Singapore is now accepting payments in USD Coin (USDC) on its online store,…
In the last three months of the year, trading volumes for cryptocurrencies like Bitcoin and…
The Pi Network (PI) has plummeted over 75% in the past three months, collapsing from…
Sonora, California, 30th March 2025, ZEX PR WIRE, As humor continues to shape popular culture,…