Yann Allemann, co-founder of Glassnode, believes that the current period of stabilisation in the price of bitcoin may be a precursor of a large price shift.
Allemann listed a number of variables that contributed to this forecast, including worn-out short-sellers, fortifying support levels, and an expected bullish trend.
Between $26,500 and $27,100 has been the price of bitcoin as the market shows signals of “extreme fear.”
Allemann pointed out that this often results in bullish movements. He emphasised how the 50 and 200 Simple Moving Averages (SMAs), which are now performing as strong support levels and have survived five tests, prevented the market from breaking below them.
Furthermore, a bullish trend was confirmed by the most recent “golden crossover” occurrence, in which the 50 SMA crossed above the 200 SMA.
The tightening of Bollinger Bands, which frequently precedes significant market changes, is one more indicator pointing to an upcoming price explosion.
The expert contends that when short sellers exhaust their positions, the possibility of an upward movement increases the longer Bitcoin trades within the present consolidation zone.
He did add, though, that the expected price explosion is not yet being precipitated by the Relative Strength Index (RSI), which is not yet exhibiting the requisite momentum indications.
According to CoinGecko data, the price of one bitcoin is $27,381.60 right now, with a 24-hour trading range between $26,590.05 and $27,416.89. The leading cryptocurrency has gained almost 1.5%. The market capitalization is at $530.55 billion or thereabouts.
