Cryptocurrency analytics firm Glassnode’s founding partners have suggested that Bitcoin (BTC) is preparing the ground for a major surge. They also made critical statements about the cryptocurrency.
Glassnode’s BTC Report
In statements made on social media platform X, Glassnode founding partners Jan Happel and Yann Allemann proposed that Bitcoin could be forming a classic bullish pattern that might lead to a significant breakout. The analysts stated:
Has BTC bottomed out in a classic descending wedge? If so, BTC should rise to $42,000 before a retest of $40,500, then climb to much higher levels. The big picture remains quite positive!
In technical analysis, a descending wedge pattern is used to determine a potential uptrend in a token’s price. The formation is characterized by a series of lower highs and lower lows that create a wedge shape on the chart. As the pattern progresses, the distance between the highest and lowest points decreases, indicating weakening selling pressure. A price breakout above the upper trend line of the wedge is generally considered bullish.
Critical Formation in BTC
The expert also applies the Elliott Wave theory, which attempts to predict price movements based on crowd psychology that emerges in waves. Traditionally, the Elliott Wave theory suggests that price movements occur in five waves following three-wave “ABC” corrections.
Looking at the analysts’ chart, it is indicated that an uptrend has begun after a five-wave decline series. Moreover, they claim that Bitcoin is showing an uptrend with the Relative Strength Index (RSI), a widely used momentum indicator aiming to determine whether a token is overbought or oversold, and added in their statements:
Uptrend towards the descending wedge! I think you will be quite disappointed due to your expectations of a lower breakdown.
Bitcoin was trading at $40,073, up 2% in the last 24 hours at the time this article was written.
