Glassnode Analysts Say Bitcoin Due for Correction After Parabolic Tear Heres Their Price Target

The founders of analytics firm Glassnode say that Bitcoin (BTC) is likely about to correct significantly after an over-extended move to the upside.

Glassnode co-founders Jan Happel and Yann Allemann, who share the Negentropic handle on the social media platform X, say that with price and sentiment getting hot, a five-wave correction to lower prices is potentially around the corner.

The analysts target the $58,000 level as a potential support level before BTC can continue higher on a longer-term bull market.

“Nothing rallies in a straight line. Not even BTC

BTC has been on a tear. In late January BTC was at $38,000. In early March it was at $72,000.

No moves without a counter-move. And a counter-move seems to be near.

We observe negative divergence – as BTC has rallied into its highs in a 3-wave structure (a B-wave). Sentiment is hot at $89,000!

It is time for a COOLER.

We see BTC dropping to ~$58-$59,000 in its next move. But Top is NOT in.”

Source: Negentropic/X

The Glassnode founders also note a divergence between Bitcoin’s relative strength index (RSI), a momentum indicator, and the upward price trend for BTC. Traditionally, when RSI trends in the opposite direction of price, it hints that a reversal may be brewing.

Not all analysts are convinced that a Bitcoin correction is imminent, however. Economist Alex Krger recently predicted that BTC would tag somewhere around the $85,000 level before diving into the $55,000 range.

Says Krger,

Bitcoin is in a supercycle (shorter shallower dips).

Macro is still looking good.

Crypto markets are heated up and euphoric.

ETF inflows can sustain and drive prices further regardless.

Krger also sees Bitcoin rallying to as high as $85,000 only to witness a 35% devaluation after.

Can see something like this: $85,000 => $55,000 => $120,000 => $85,000.

At time of writing, BTC is trading at $72,876.

Don’t Miss a Beat Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp

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 loses 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.

Featured Image: Shutterstock/QalexanderK/Konstantin Faraktinov

This article was originally reported on The Daily Hodl.