The founders of crypto analytics platform Glassnode say that Bitcoin (BTC) may reach $85,200 before summer if a technical setup plays out.
In a new thread, the co-founders of Glassnode , who go by the handle Negentropic on the social media platform X, tell their 62,800 followers that the crypto king appears to be breaking out of a bullish pennant pattern.
“BTC [is] currently in process of breaking [the] trendline of Pennant and the 50 Daily SMA (simple moving average). When the level [of] $65,000-$66,000 is broken, BTC will move on to first $73,500, then $76,500, and chances are that we see $85,200 before the Summer.”
Negentropic goes on to note that the top crypto asset by market cap had a bearish weekend marked by liquidations of long positions. The Glassnode co-founders say that if BTC continues to consolidate, it could shoot past the $65,000 resistance level to $70,000.
“BTC has recovered – but bearish sentiment persists. BTC rebounded from bear market territory over the weekend amidst a weaker dollar.
Yet, bearish sentiment persists with a high-risk signal. Liquidations of long positions cooled the perpetual markets. If consolidation continues, a breakthrough of $65,000 resistance could revive momentum to $70,000.”
However, over the weekend, crypto analyst Benjamin Cowen said that he believes BTC’s rally may be short-lived as it is currently acting as a more volatile version of the stock market.
According to Cowen, BTC may be following in the footsteps of the Russell 2000 Index, NASDAQ and S&P 500. Cowen says the three major stock indexes rose to around their 50-day simple moving average (SMA) before correcting – a pattern he says BTC could follow.
Bitcoin is trading for $62,289 at time of writing, a 2.22% decrease during the last 24 hours.
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Featured Image: Shutterstock/Jorm S
