The founders of analytics platform Glassnode believe Bitcoin (BTC) is gearing up for a much bigger move to the upside.
Glassnode co-founders Jan Happel and Yann Allemann, who share the Negentropic handle on the social media platform X, say that Bitcoin appears to be forming a bullish pattern amid a market correction.
However, the analysts say the correction could continue over the short term.
“Triangle thesis gaining strength! While there is little doubt that the ongoing pattern developing in BTC is correctional, there has been some doubt on which pattern is developing. With the price developments over [Thursday and Friday], the potential triangle pattern becomes more probable. In the bigger picture, this means much more upside to BTC. In the shorter timeframe, it may mean more sideways consolidation.”
The analysts utilize the Elliot Wave Theory in their technical analysis. The theory aims to predict price impulses based on crowd psychology, which tends to manifest in waves. Looking at their chart, the analysts suggest that BTC could make another impulse upward after consolidating within a bullish triangle pattern and after completing the waves labeled D and E.
The analysts also say that three key daily moving averages (DMAs) are starting to indicate bullishness for Bitcoin.
“Moving averages suggests positive shift creating upward momentum in BTC. Bitcoin’s daily chart signals a mixed bag of bullish and bearish patterns, indicating an extended consolidation phase amidst high volatility and market uncertainty. With support at $59,313 and resistance at $73,794, the market navigates within these parameters.
Significantly, the 50, 100 and 200-day moving averages are now hinting at a positive shift, providing foundational support and potential for upward momentum. This emerging pattern suggests a cautious yet optimistic outlook for Bitcoin, highlighting potential for gradual recovery and growth.”
Bitcoin is trading for $68,050 at time of writing, up slightly in the last 24 hours.
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