dailyhodl.com
The co-founders of the crypto analytics firm Glassnode believe Bitcoin (BTC) is about to soar as it holds above $28,000.
Glassnode co-founders Jan Happel and Yann Allemann, who share the Negentropic handle on the social media platform X, say a key indicator is flashing for the crypto king.
The traders look at the Bollinger bands bandwidth (BBW), a price volatility gauge. The upper and lower bands widen when volatility declines while the bands contract when volatility is about to explode.
“Bollinger bands width has dwindled to a mere 0.20. This level has previously been linked to major volatility events in BTC’s history.
Notably, the Bollinger bands 50 and the moving average (MA) 50 are positioned below the candlesticks, a bullish indicator hinting that the price is expected to surge above these levels.
Brace yourselves. History shows that significant price fluctuations tend to follow such squeezes. Volatility is brewing, and it’s about to make its grand entrance.”
The traders also say that Bitcoin’s risk signal, a metric that gauges the level of risk of a major price dip, indicates BTC is finding support at the $28,000 level after briefly touching $30,000 on Monday. The metric also indicates BTC may soon make another move to the upside.
“Are bulls taking control as they rally around the $28,000 zone? Main takeaways:
- Current price is greater than $28,000 and above the 100-hourly SMA (simple moving average).
- Immediate resistance at $28,550.
- Break past $29,500 could lead to $30,000 target.
- Potential to reach beyond $30,650 with continued momentum.
Conclusion: risk signal at zero, hinting at a bull run environment.”
The traders say that the $28,000 level for BTC is significant for a number of reasons.
“Why does the $28,000 level for Bitcoin matter?
1. Immediate surge: after recent publications, BTC experienced a sharp rise across trading platforms. On the Binance BTC/USDT market alone (accounting for 8% of BTC’s 24-hour volume), it jumped from $27,880 to $30,000. That’s a 7% increase in just about 30 minutes!
2. Critical milestone: the crypto market is hinged on BTC’s ability to breach and consistently maintain a value north of $28,000.
3. Brief touch: while this pivotal milestone was momentarily attained on futures, the spot market price peaked at $27,980 earlier today. It’s evident just how crucial this price point is in the larger scheme.
4. Takeaway: the rapid movements and these price thresholds aren’t just numbers. They signify investor sentiment, market dynamics. Keep an eye out for the $28,000 level.”
Bitcoin is trading for $28,740 at time of writing.