The co-founders of the blockchain analysis platform Glassnode are warning that Bitcoin (BTC) may have a sudden pullback even as it continues to hold a critical range as support.
Glassnode and Swissblock co-founders Jan Happel and Yann Alleman, who share the social media handle Negentropic, say that low trading volume suggests there is a risk Bitcoin may suddenly correct by more than 7% of its current value if it fails to hold $91,500 as support.
The analysts also say that the latest US job data released Friday morning may create market volatility.
“Bitcoin is holding support at $91,500-$92,500 but lacks volume and strength – could this be a pullback before testing $86,500-$90,000? All eyes on US employment data! Will it fuel a breakout above $95,500 toward $97,200-$98,500, or will BTC fall back to support?”
The analysts say another bearish factor for Bitcoin may be due to concerns over market impacts from the reported potential sale of a large amount of Bitcoin by the US government that it seized from the Silk Road darknet marketplace.
“Price momentum turns bearish as Bitcoin retests $92,500. With fear, uncertainty and doubt over the US government’s 198,000 BTC and potential sales, could we see a break below and a move to $90,000? Historically, a bearish flip after prolonged bullishness signals corrections to lower support. $90,000 is the key zone to watch!”
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Author: Daily Hodl Staff
