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The Daily Hodl 2025-03-20 07:04:32

Bitcoin (BTC) Needs Three Elements To Rally With Conviction, According to Glassnode Co-Founders

The co-founders of the crypto analytics platform Glassnode believe that for Bitcoin ( BTC ) to enter a strong uptrend, key metrics need to align. Jan Happel and Yann Allemann, who go by the handle Negentropic, tell their 63,100 followers on the social media platform X that based on historic precedence, three elements must line up for Bitcoin to take off on a sustained bull run. The analysts include the Bitcoin Risk Signal as a key element, which gauges whether BTC is at risk of a major drawdown in price. Glassnode says it is “based on a set of proprietary indicators, including bitcoin price data, on-chain data, and a selection of other trading metrics.” “For Bitcoin price to rally with conviction, we need an alignment of three elements (green areas): Market sensitivity: Bitcoin correlation with macro and on-chain activity. Network activity: network growth and network liquidity. Risk off signal: risk signal or at 0. Indicating falling or small chance of capitulation.” Source: Negentropic/X Allemann and Happel’s crypto firm Glassnode says that another key metric suggests accumulation of Bitcoin is starting to emerge as a market trend. “Since March 11th, Bitcoin’s Accumulation Trend Score has risen above 0.1, indicating some buying during the recent downtrend. While distribution remains dominant, this shift suggests early signs of accumulation.” Source: Glassnode/X Glassnode also says that Bitcoin’s realized cap net position change is suggesting that profit-taking and capital inflows are slowing. The realized cap net position change tracks an asset’s capital inflows and outflows with positive values indicating accumulation. “The Bitcoin market continues to adjust to its new price range after experiencing a -30% correction. Liquidity conditions are also contracting in both on-chain and futures markets.” Source: Glassnode/X Looking at Glassnode’s chart, the firm seems to suggest that Bitcoin’s realized cap net position change is up 0.67%. In Bitcoin’s current context, it might indicate a market recovery. Bitcoin is trading for $86,272 at time of writing, up 3.6% in the last 24 hours. Follow us on X , Facebook and Telegram Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Surf The Daily Hodl Mix 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 The post Bitcoin (BTC) Needs Three Elements To Rally With Conviction, According to Glassnode Co-Founders appeared first on The Daily Hodl .

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