The founders of blockchain analytics platform Glassnode, Jan Happel and Yann Alleman, are concerned about Bitcoin. If two crucial factors do not improve in the short term, they expect a decline of around 4%.
Bitcoin update: After a hotter-than-expected inflation report , BTC grabbed liquidity at $94K, peaked at $98K, but is now pulling back to $96K.
Weak liquidity + declining network growth = warning signs. If conditions don’t improve, a breakdown to $92K could be next. Stay sharp! pic.twitter.com/oLogiK6Pct
— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) February 13, 2025
Risk for Bitcoin
According to analysts active on X under the username Negentropic, there is currently weakened liquidity in the market. In addition, there is a decline in network growth, measured by the number of users and transactions.
These factors together create a bearish signal for BTC, according to Glassnode.
“BTC Update: Following higher than expected US inflation, BTC sought liquidity around $94,000 and reached a high of $98,000. However, we are now seeing a drop to $96,000. Weak liquidity combined with declining network growth are warning signs.
If conditions do not improve significantly, a correction to $92,000 could be the next step. Stay alert!”
However, Glassnode analysts also see positive signals for BTC. If the digital currency can maintain its support at $95,000, this could serve as a springboard for higher prices.
Another sign that Bitcoin may have found a bottom before a push toward $100K is the regime shift, showing early signs of a trend change.
Choppy price action could continue, even with a retest of $95K, but as long as this zone holds as support, BTC could solidify its move into… pic.twitter.com/zTKBSMZspS
— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) February 11, 2025
Has Bitcoin found its bottom?
“Another signal that BTC may have bottomed out before the price can rise to $100,000 is the regime shift. This shows early signs of a trend reversal. The volatile price action could continue, even with a retest of the $95,000 mark.
As long as this area remains as support, BTC could strengthen its move into the bullish quadrant,” said analysts at Glassnode.
According to the experts, BTC’s risk index also suggests that the cryptocurrency may be in a bottoming phase. This indicator is based on several data points and, according to the analysts, is considered a “key signal” for a possible local bottom for BTC.
