• Bitcoin’s rally from December lows after the FTX collapse surprised many investors, according to Glassnode.
• Bitcoin could see further upside but a fresh buy signal is likely at prices around $28.3k.
• On-chain data platform Glassnode has highlighted the possibility of profit booking from short-term holders and miners at higher prices.
Bitcoin has recently seen a surge in its value, with the leading cryptocurrency’s value pushing above the psychological $20k level. This unexpected rally, which started after the collapse of FTX back in December, has surprised a lot of investors. According to Glassnode, a leading on-chain data platform, this could be a sign of things to come and could lead to further upside.
Glassnode has highlighted that while prices are now above the $23,000 range, there is a motivation for network participants to take exit liquidity. This is particularly true for short-term holders and miners, who were hit hard by the bear market of 2022. The company believes that a fresh buy signal is likely at prices around $28.3k. However, there is a risk of selling pressure at prices above $23.3k.
In addition, Glassnode has noted that the recent rally has pushed several on-chain pricing models back into the green, which could potentially provide further upside for Bitcoin. The company also highlighted that Bitcoin may now be “almost out of the woods”, suggesting that the worst of the bear market may be behind us.
Overall, while the rally has been unexpected, it is a welcome change for investors who have been waiting for a turnaround in the market. However, there is still the question of whether this is a genuine opportunity or just a trap. Glassnode’s analysis suggests that the rally could continue, but there is also a risk of profit booking at higher prices. As such, investors will have to monitor the market closely and make their own decisions about where to take profit and when to buy.