Surprising Bitcoin Price Surge Anticipated as BTC Responds to High Inflation Data: Insights from Glassnode Founders

Despite Recent Surges in Inflation, Glassnode Founders Predict a Significant Upside Movement for Bitcoin (BTC)

As per Glassnode's co-founders, Jan Happel and Yann Allemann, Bitcoin has successfully reestablished $26,000 as a strong support level, and the BTC Risk Signal, a key metric developed by Glassnode to assess the likelihood of a significant Bitcoin price drop, has sharply declined.

In the words of Glassnode's founders:

"The anticipated 0.6% increase in the US Consumer Price Index (CPI) was expected to impact Bitcoin's price, and indeed, it has had an effect.

With support firmly secured above the $26,000 mark, Bitcoin is now setting its sights on surpassing the $27,000 threshold, potentially breaking out of a multi-week consolidation phase.

The notable drop in the Risk Signal to the 60s signifies a shift in market sentiment. While profit-taking pressure may emerge around $27,400 and $28,200, this ascent appears to be a preparatory step toward confronting the psychological barrier at $30,000."

"In the previous week, the U.S. Bureau of Labor Statistics reported a CPI increase from 0.2% in July to 0.6% in August. Remarkably, the release of this data coincided with an upswing in both the cryptocurrency and equity markets.

The founders of Glassnode, who use the pseudonym Negentropic on the X social media platform, seem to be envisioning a sustained upward trajectory for Bitcoin with significantly higher price targets in mind.

These analysts have presented a chart indicating that Bitcoin has rebounded from a substantial ascending channel and is poised to ascend towards the upper boundary of the channel, reaching approximately $150,000. At this level, sentiments of 'greed,' 'euphoria,' and 'FOMO' (fear of missing out) could potentially come into play."

As of the time of writing, Bitcoin is currently trading at $26,538.

Sep 17, 2023