On Thursday, cryptocurrency markets saw further weakness, leading Bitcoin and other leading cryptocurrencies to fall. Bitcoin, the largest crypto token, saw another 2 percent drop in value but managed to remain slightly above $26,000.
Negentropic, co-founder of crypto analytics firm Glassnode, believes Bitcoin (BTC) has bottomed and is now poised for a significant rally. According to Negentropic, two simple moving averages (SMAs) suggest that a Bitcoin breakout is very likely in the near future.
Prob of a pause in June most likely outcome after #Fed Powell's remarks: the risk of doing too much and doing too little is balanced.$DAX ATH, $SPX holding above 4190, #BTC at $35k is inevitable. Why? When? https://t.co/MRRykuaMkM pic.twitter.com/1vR2Sy6fm1
— π‘π²π΄π²π»ππΏπΌπ½πΆπ° (@Negentropic_) May 20, 2023
The analyst notes that the 200-day SMA, a key indicator used by traders to assess long-term market trends, is acting as a support level for Bitcoin (BTC). Additionally, the analyst notes that the 50-day SMA is close to breaching the 200-day SMA. Based on historical patterns, this crossover suggests that Bitcoin is poised for significant gains in the near future.
βThe bitcoin bottom is in. The shorts are exhausted after numerous failed attempts to break below the 200-day SMA, which is a solid support. The bullish crossover of the 50-day SMA above the 200-day SMA depends on when BTC crashes.β
The crypto analyst further proves his point on the Bitcoin rally by referencing a chart by macroeconomist Henrik Zeberg depicting the performance of the NASDAQ 100 E-mini futures.
According to the analyst, the chart shows a completely bullish pattern with no obvious technical weaknesses. He points out that despite the concerns, the NASDAQ is posting a steady climb driven primarily by five stocks and predicts that positive momentum will soon spread to smaller stocks as well.
“Probability of break in June, most likely outcome thereafter.” [Federal Reserve Chair Jerome] Powell’s comments: There is a balance between the risk of doing too much and doing too little. DAX (Deutscher Aktienindex) ATH (all-time high), SPX (S&P 500) remains above 4,190, BTC at $35,000 is inevitable.β
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