The founders of the analytics platform Glassnode are predicting the altcoin market cap will surge by 350% after the recent correction.

Glassnode co-founders Jan Happel and Yann Allemann, who share the Negentropic handle on the social media platform X, say the alt market cap may be forming a similar 2021 structure when there was a sudden retracement followed by a massive bull run.

The analysts use the Elliott Wave theory in their analysis, which states that an asset tends to witness a five-wave rally.

“The crypto bull market continues. ‘Others’ follow crypto excluding the largest ten cryptos. Observe that we in early 2021 had a strong correction. We believe that was a wave four. We now have a similar strong decline. More upside is coming. This index and our Fibonacci levels give us [reason to believe] we may see ~350% upside from current levels.”

The founders recently said another bullish catalyst for the crypto market is the waning strength of the US dollar index (DYX).

According to the analysts, the DXY likely printed a top earlier this month in an expanding diagonal pattern, implying that a significant downward move is underway, which may be a catalyst for a renewed bull market for Bitcoin (BTC).

The founders also weigh in on what they believe are the price impacts from the spot BTC exchange-traded funds (ETFs). They say that ETF investors are reactionary to price declines, but not a cause of them.

“The significant volume handled by ETFs also highlights their potential as catalysts in the market, potentially driving both short-term price movements and long-term strategic shifts in investment and trading behaviors. So far, however, significant ETF outflows often align with notable price drops in the Bitcoin market, indicating that investors tend to react to existing downturns rather than causing them.

This suggests a predominantly reactive investor behavior in times of market volatility, which is crucial for understanding the causality of price movements.”

Bitcoin is trading for $66,434 at time of writing, down slightly in the last 24 hours.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

A closely followed crypto strategist thinks that Bitcoin (BTC) is primed to launch the final steep rally of its parabolic trend.

In a new video update, analyst Kevin Svenson tells his 142,100 followers on the social media platform X that Bitcoin is about to ignite the last leg of its parabolic rally that could see prices close to $100,000.

“Bitcoin may be ready to play out the final vertical point on the parabolic trend, which is a big, big move. Bitcoin is currently sitting in base four. Once we break a new high that confirms base four, we could be headed up toward $90,000. This is a big move – $66,000 to $90,000 – that’s a big move, despite what it looks like on the weekly chart.

And there are indicators to suggest that we may be seeing this happen in the next month or two, and that is the weekly MACD (moving average convergence divergence). Holding the neutral zone is important in a momentum-based trend.”

The MACD is a technical indicator that gauges the momentum of a trend. According to Svenson, Bitcoin appears to be repeating the same pattern witnessed in 2017 when the crypto king sparked big rallies after holding the MACD neutral zone.

“Look at 2017. In 2017 when we went from just hundreds of dollars all the way up to $20,000, we held the MACD neutral zone on every pullback. And that marked the low with the next major parabolic advance – a huge move up for Bitcoin each time. 

Right now, pretty clear, Bitcoin is playing out a similar pattern, a continuation pattern: hold the neutral zone [and then] parabolic advance… That’s going to give us our next vertical push toward the sell point, according to the textbook. 

Is the sell point the end of the Bitcoin cycle? No. It is the end of the trend with a consolidation and a continuation up later.” 

At time of writing, Bitcoin is worth $66,557.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: DALLE3

Bitcoin price climbed above the $66,000 resistance zone and started consolidation. BTC is now eyeing the next move above the $67,200 resistance zone.

• Bitcoin is eyeing a decent increase above the $67,200 resistance zone.
• The price is trading above $65,500 and the 100 hourly Simple moving average.
• There is a connecting bullish trend line forming with support at $65,900 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could gain bullish momentum if it clears the $67,200 resistance zone.

Bitcoin Price Eyes More Upsides

Bitcoin price started a fresh increase above the $65,500 and $66,000 resistance levels. BTC even climbed above the $67,000 level. It traded as high as $67,200 and is currently consolidating gains.

There was a minor decline below the $66,500 level, but the price remained stable above the 23.6% Fib retracement level of the upward move from the $64,280 swing low to the $67,200 low. Bitcoin price is still trading above $65,500 and the 100 hourly Simple moving average.

There is also a connecting bullish trend line forming with support at $65,900 on the hourly chart of the BTC/USD pair. The trend line is near the 50% Fib retracement level of the upward move from the $64,280 swing low to the $67,200 low.

Immediate resistance is near the $67,000 level. The first major resistance could be $67,200. A clear move above the $67,200 resistance might send the price higher. The next resistance now sits at $68,500. If there is a clear move above the $68,500 resistance zone, the price could continue to move up. In the stated case, the price could rise toward $70,000.

Source: BTCUSD on TradingView.com

The next major resistance is near the $70,500 zone. Any more gains might send Bitcoin toward the $72,000 resistance zone in the near term.

Are Dips Limited In BTC?

If Bitcoin fails to rise above the $67,000 resistance zone, it could start a downside correction. Immediate support on the downside is near the $66,200 level.

The first major support is $66,000 or the trend line. If there is a close below $66,000, the price could start to drop toward $65,400. Any more losses might send the price toward the $64,200 support zone in the near term.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $66,200, followed by $66,000.

Major Resistance Levels – $67,000, $67,200, and $68,500.

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.