According to the co-founder of crypto analytics firm Glassnode, the current macro environment is perfect for riskier assets like Bitcoin to flourish.
The analyst, known as Negentropic, shared on Twitter that the U.S. Dollar Index (DXY) is weakening, which he believes is beneficial for Bitcoin.
Negentropic also points out that the Nasdaq 100 is approaching its highest point ever, achieved in late 2021.
Based on historical data, when the Nasdaq reaches important levels, Bitcoin typically follows suit within about 80 days. This pattern usually begins with the Nasdaq stabilizing as money moves towards riskier assets. After this shift, the Nasdaq tends to surge again, driving up Bitcoin’s value.
Source: Negentropic/X
The analyst suggests that traders should watch for Bitcoin’s price to stay above $29,300 and challenge the $29,700 level. If it manages to reclaim $30,400, it could test the $30,800-$31,000 resistance area.
Despite the significant trading volumes around $23,000 earlier this year, the analyst remains bullish on Bitcoin’s prospects. Several factors support its upward movement, making a crash back to $23,000 or below less probable.
At the time of writing, Bitcoin is trading at $29,796, having increased by more than 2% in the past 24 hours.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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