The co-founder of Glassnode, a popular figure in the crypto space has analyzed and predicted a Bitcoin rally to $42000 if a bottoming signal is confirmed.
Bitcoin, the largest cryptocurrency by market cap has experienced a price correction since its decline after the approval of an ETF by the United States Securities and Exchange Commission on January 11.
The token now faces a critical test if a bottoming signal in its price chart is verified. Earlier today, January 24, Bitcoin price surged by over 4% reaching a high of $40,527 according to CoinMarketCap data. However, it has trimmed some of its gains and has dropped $39,761.
Given the recent trend in BTC price, Glassnode co-founders Jan Happel and Yann Allemann who share the handle “Negentropic” on X have predicted that Bitcoin might experience a pattern that could lead to a bullish trend soon.
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The descending wedge pattern
In the post, Negentropic wondered if Bitcoin had just bottomed into a descending wedge with a classical throw-over, adding that if that is the case, “then BTC should rally to 42.0K before a retest of 40.5K.” Once this happens, the price should “take off to a much higher level.”
Did #BTC just bottom in Descending Wedge with a classical Throw-over?
If this is the case, then BTC should rally to ~42.0K before a retest of ~40.5K – and then it should take off to much higher levels.
The bigger picture is still very Bullish!@HenrikZeberg #bitcoin… pic.twitter.com/nV2rN02Qes
— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) January 24, 2024
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Furthermore, the Glassnode co-founder stressed that the bigger picture for Bitcoin is still bullish. For context, a descending wedge pattern is formed by drawing two descending trend lines with one representing highs and the other, lows.
It is used in technical analysis to determine a potential bullish reversal in the price of a digital asset. The pattern shows that the selling pressure reduces as it moves forward since the gap between the highs and lows gets smaller.
Generally speaking, it is bullish when the price breaks out of the wedge’s upper trend line. Before the approval of Bitcoin ETFs, the crypto market experienced a significant surge fueled by speculations.
However, since the approval, the price of Bitcoin and other altcoins has dropped significantly. Since then, the price of the asset has dropped by over 20% as excitement over the development gave way to anxiety which triggered a massive sell-off resulting in the current situation.
Do you think the price of Bitcoin will rally to $42k and above? Share your thoughts.
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Victor Swaezy
Victor Nnamdi Igbor "Swaezy" is a crypto enthusiast and writer with over 8 experience in blogging. He is an easy person and when not working, loves to have a good time.