Glassnode co-founder predicts bullish bitcoin amid sideways trading

Bitcoin (BTC) has been trading in a narrow range for the last 12 days. Nonetheless, the fact that the bulls held the crucial $30,000 support level is seen as a short-term win for them.

Even though BTC is experiencing sideways trading, there is a growing sense of optimism that it has the potential to break above the overhead resistance area and reach new highs.

BTC’s sideways trading setting the stage for a bullish move?

According According to Yann Alleman, co-founder of blockchain analytics firm Glassnode, bitcoin’s recent sideways trading has paved the way for a potential upside move soon. BTC’s current range-bound trading between $31,200 and $29,600 is seen as a consolidation period that allows the market to re-establish bullish momentum.

To assess market sentiment and potential price movements in the bitcoin market, Glassnode has developed a proprietary metric called the SwissBlock Risk Signal. This metric considers a variety of factors including volatility, on-chain activity, social sentiment, and more.

In the context of Alleman’s analysis, the SwissBlock risk signal remains stable at 0, as seen in the chart below, which indicates that the current market sentiment is neutral, with no clear dominance of either buyers or sellers.

This may indicate that the market is in a consolidation phase, as buyers and sellers are cautious before making any significant moves.

Additionally, Alleman predicts that BTC will likely break above $31,200, providing a strong base for buyers to target the $33,000 and $34,800 resistance levels. However, even if the $29,600 support is broken, Alleman believes that the bullishness will remain up to the 50% retracement level near $28,200.

This drop could present an opportunity for investors to accumulate BTC for the next jump as the market shows signs of potential upside. Thus, Alleman’s analysis suggests that current market conditions present a favorable opportunity for those looking to invest in bitcoin.

Bitcoin is facing dire moments

Bitcoin is facing a critical moment as its price is fluctuating within a narrow range. warned Market analyst Michael Van de Poppe. With bitcoin hitting lower lows again, van de Poppe believes it could test the support at $28,500 if it fails to recover soon.

Expectations of a rate hike due to positive unemployment data are adding to the challenges for bitcoin. This has fueled speculation that the Federal Reserve will raise interest rates sooner than expected. This could create a more challenging economic environment for cryptocurrencies.

If both the key $29,600 and $28,500 resistance lines come under pressure, a potential upside move could be at risk in the near term, potentially resulting in a retracement towards the $27,500 resistance. This would represent a 9% decline from the current level of $30,200.

If such a scenario occurs, it may take time for bitcoin bulls to reclaim their current levels. In the past, periods of consolidation have typically been followed by a pullback prior to any further continuation to recapture lost levels.

However, as long as it can maintain the $30,000 range, despite the challenges facing Bitcoin, BTC bulls will have the upper hand. At the time of writing, BTC is trading at $30,200, down slightly by 0.3% over the past 24-hours.

Featured Image from iStock, Chart from Tradingview.com