Glassnode Co-Founders Outline Key Factors for Bitcoin’s Price Rally

Jan Happel and Yann Alleman, co-founders of the blockchain analytical platform Glassnode, are outlining a plan for Bitcoin (BTC) to return to six-figure levels and higher. Their study provides a thorough examination of the factors that might contribute to the next spike in the price of bitcoin by referencing both recent and historical market cycles.

Liquidity and Market Growth as Key Drivers

Happel and Alleman, who operate under the social media handle Negentropic, compare Bitcoin’s current market situation to a similar phase in late 2020 to early 2021. During that period, Bitcoin faced a price correction while liquidity flowed out of the market. Despite the price drop, network growth continued to rise. The co-founders suggest that when liquidity returned to the market, Bitcoin’s price surged sharply.

According to Negentropic, the resurgence of liquidity could play a major role in a potential price increase. “This suggests that we could potentially see a price pump once liquidity flows back into the market and the price does not drop to lower levels as long as network growth remains at bullish levels.”

Despite the optimism around Bitcoin’s future, market sentiment remains mixed, particularly when it comes to profit-taking. As the market approaches price levels around $90,000 to $100,000, long-term holders have begun to cash out, creating selling pressure. Glassnode and Swissblock, in a joint post, highlight that this profit-taking has been ongoing but is gradually losing intensity.

“Profit-taking above $90,000 and near $100,000 has persisted among market participants (no surprise, as long-term holders continue to take profits). However, this selling pressure is gradually losing intensity,” they noted. For Bitcoin to continue its upward momentum, it’s essential for profit-taking to calm down and avoid heavy selling that could cause significant market fluctuations.