• Co-founder of the crypto analytics firm Glassnode believes that a Bitcoin (BTC) bottom has formed, setting the stage for a big rally.
• Crypto analyst predicts stocks are at the start of a bull and Federal Reserve will pause, not raise interest rate hikes next month.
• Bitcoin is predicted to soar to the $35,000 price level as a result of liquidity returning to the markets.
Glassnode Predicts Bitcoin Breakout
The co-founder of crypto analytics firm Glassnode, Negentropic, believes that a Bitcoin (BTC) bottom has formed and is setting up for a big rally. He explains that two simple moving averages (SMAs), specifically the 200-day SMA and 50-day SMA, have formed support for BTC and are showing signs of an imminent breakout.
Nasdaq Bull Run
Negentropic also claims stocks are at the start of a bull run based on an analysis from macroeconomist Henrik Zeberg displaying NASDAQ 100 E-Mini Futures performance. He advises investors to look out for what he calls “bull flag pattern” which is two rallies with brief consolidating retracement periods as bullish indicators.
Federal Reserve Interest Rate Hikes Pause
Negentropic suggests that Federal Reserve Chair Jerome Powell’s remarks about balancing risks between doing too much or too little have raised the probability of pausing June interest rate hikes. This in turn may lead to liquidity being restored in markets and potentially pushing BTC towards its $35,000 target price level.
Current Price Action
At time of writing, Bitcoin is trading for $27,202 with 1.3% growth during last 24 hours.
It appears that all necessary conditions are in place for potential massive gains in both stocks and cryptocurrencies such as Bitcoin due to Federal Reserve pausing interest rate hikes and SMAs forming solid support levels for BTC respectively. We will just have to wait until these predictions come true!