đ„đ„đ„ Glassnode Co-Founder Warns: #Bitcoinâs Surge Could Trigger A $1 Billion Liquidation Event â Hereâs Why
Jan Happel and Yann Allemann, co-founders of Glassnode, provided valuable insights into Bitcoin price dynamics, emphasizing the significance of liquidity. Their analysis suggests that Bitcoin's recent surge beyond $42,200 has established a substantial liquidity pool for long positions, resulting in a "neutral impulse" in the market.
This trend indicates Bitcoin's intention to bridge the liquidity gap above the $42,000 mark, potentially leading to increased volatility and notable market shifts. Negentropic, a Glassnode analyst, predicts that the #bullish momentum could trigger liquidations totaling $1 billion in short positions, potentially sparking a "short squeeze" and a rapid price increase. Such movements often create an environment conducive to Bitcoin's growth.
Negentropic also linked the growing liquidity in the crypto market to China's efforts to stabilize its markets by injecting substantial liquidity. This development is seen as a crucial catalyst for #cryptocurrencies like Bitcoin and equity markets in the first half of 2024.
In tandem with these developments, Bitcoin has experienced a resurgence, currently trading at $43,325, reflecting a 6% increase over the past week. Despite this upward movement, the daily trading volume has decreased from $26 billion last Monday to $14 billion today, signaling a cautious market sentiment.
Bullish signals persist in the market, with analysts like Jelle suggesting that with Bitcoin reclaiming the $42,000 level, it may be time to focus on long positions again. Michael van de Poppe, another prominent crypto analyst, expressed optimism in his recent YouTube video, suggesting that the recent Bitcoin price correction might have concluded.
Supporting the bullish sentiment, Ali's chart analysis reveals a rise in large Bitcoin holders, with an additional 46 entities now holding 1,000 $BTC or more, representing a 3% increase in just two weeks.
Source - newsbtc.com