Co-founder of the crypto analytics firm Glassnode believes that a Bitcoin (BTC) bottom has formed, setting the stage for a big rally.
The pseudonymous crypto analyst Negentropic, one of Glassnode’s co-founders, tells his 54,900 Twitter followers that two simple moving averages (SMAs) are showing a Bitcoin breakout is likely imminent.
Lastly, the crypto analyst believes that the Federal Reserve will pause, not raise interest rate hikes, next month after it had made a series of rate hikes since last year in an effort to draw down inflation.
He predicts Bitcoin will soar to the $35,000 price level as a result of liquidity returning to the markets.
“Probability of a pause in June most likely outcome after [Federal Reserve Chair Jerome] Powell’s remarks: the risk of doing too much and doing too little is balanced. DAX (Deutscher Aktienindex, a German stock index) ATH (all-time high), SPX (S&P 500) holding above 4,190, BTC at $35,000 is inevitable.”
According to the analyst, the 200-day SMA, a key indicator traders use for determining overall long-term market trends, has remained a line of support for BTC. He says that the 50-day SMA is on the verge of crossing over the 200-day SMA, which indicates, based on past performance, that Bitcoin will likely put up huge gains any moment now.
“Bitcoin bottom is in. Shorts getting exhausted after failing numerous attempts to break below 200-day SMA, which is a solid support. 50-day SMA bullish crossover over 200-day SMA, it’s a matter of when BTC goes off.”