The cofounder of Glassnode, also known as “Negentropic” on X, is talking about the price of Bitcoin.
In a recent tweet, the cofounder of Glassnode expresses his opinions and emphasises the importance of liquidity on the price of bitcoin. According to his research, there was liquidity for long positions with a neutral impetus following Bitcoin’s recent rally above $42,200.
https://x.com/Negentropic_/status/1751916305249169753?s=20
He claims that the price of Bitcoin is currently approaching $42,000 in order to close the liquidity gap, signalling probable instability and the completion of liquidations totaling around $659 million.
Negentropic bases his prediction that bullish momentum may cause $1 billion in short position liquidations, which might drive the market higher. This kind of situation might lead to a “short squeeze,” which is a sudden spike in the price of an asset when many short sellers are forced to liquidate their positions.
A decrease in selling pressure from investors taking gains in Grayscale Bitcoin Trust (GBTC) is consistent with this positive outlook.
A $140 billion infusion into the financial system has been announced by China’s central bank, and GBTC outflows seem to be decreasing in recent days.
In a previous tweet, the co-founder of Glassnode said that the liquidity rush has started as China tries to support its markets with massive amounts of liquidity. He thinks this might be the spark that moves the stock and cryptocurrency markets into the first half of 2024.
Bitcoin might reach $50,000 in Q1, 2024
Before dropping to almost $42,000 at the time of writing, Bitcoin reached a peak of $42,839 on January 28. The most recent movement in the price of Bitcoin is a component of the rebound rally that started last week after a decline to $38,500.
By the end of the first quarter, Bitcoin prices may rise above $50,000, according to Markus Thielen of 10x Research.
“The November to January trend channel indicated a short-term resistance level of 42,800, which Bitcoin rose just shy of. By the end of this quarter, we anticipate Bitcoin will break through and recapture the 50,000+ level, even though the 43,000–44,000 region is likely to become a minor resistance area “On Monday, Thielen tweeted.
