Babylon

Rally

Bitcoin

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Analysts predict Bitcoin’s recovery could extend to $70K due to low-risk levels and increased network activity.</li>
 <li>However, over-leverage could pose a potential risk to Bitcoin’s price.</li>
</ul>
<p>The founders of Glassnode, Jan Happel and Yann Allemann, have suggested that Bitcoin is well-positioned to retest the $70K mark. They warned that those planning to short Bitcoin at $68K or $69K could face significant liquidations.</p>
<p>The pair, known as Negentropic, identified a compression channel within the megaphone pattern as Bitcoin continues to consolidate after reaching new highs in March.</p>
<h2 id="bitcoin-s-potential-rally">Bitcoin’s Potential Rally</h2>
<p>The Glassnode founders, through their crypto insights platform Swissblock, suggested that Bitcoin could reach $70K due to current low-risk levels and a surge in network activity. They noted that Bitcoin’s rally to $64K changed the asset’s risk profile from high to low.</p>
<p>Historically, recoveries in May, June, and July occurred after Bitcoin displayed a low-risk profile. This trend may repeat, pushing Bitcoin to $70K. Swissblock also pointed to an increase in Bitcoin network growth, confirming the sustainability of the uptrend.</p>
<p>Although network liquidity lags behind growth, there are signs of slow improvement that could boost Bitcoin. Negative funding rates in Bitcoin’s perpetual markets could also speed up the recovery.</p>
<h2 id="factors-influencing-bitcoin-s-recovery">Factors Influencing Bitcoin’s Recovery</h2>
<p>The low funding rates for Bitcoin have been attributed to the dominance of US spot Bitcoin ETFs, which have a greater impact on price than derivative markets. Swissblock speculated that recent Bitcoin staking on the Babylon staking platform may have contributed to these negative funding rates.</p>
<p>VanEck has also predicted a similar recovery, citing a comparable risk appetite for Bitcoin seen in previous market recoveries. However, a CryptoQuant analyst warned that over-leverage (Open Interest rates) is driving Bitcoin’s price, which could lead to a price reversal, as has happened in the past.</p>

Expect No Shock: Bitcoin’s Imminent Leap to $70K

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CoinEagle.com

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