Glassnode co-founder Yann Allemann predicts a rise in Bitcoin (BTC). According to the data, BTC appears ready for a recovery.
Yann Allemann, co-founder of Glassnode, mentioned that Bitcoin might be ready for a recovery. In a tweet, Allemann highlighted that short positions in Bitcoin had been exhausted after multiple attempts to drop below the important support level and trend line of the 200-day simple moving average (SMA). Furthermore, the upward crossover of the 50-day SMA above the 200-day SMA suggests a price increase for Bitcoin is on the horizon.
These bullish comments come amidst recent cautionary statements by JPMorgan CEO Jamie Dimon, who warned about the potential for higher interest rates. During an investor day, Dimon suggested that rates could potentially rise above the current level of 5% and reach up to 7%. Dimon's remarks indicate a bearish environment for risky assets like Bitcoin, which could potentially be affected by a stronger U.S. dollar due to rising interest rates.
The influence of the Fed on Bitcoin continues. Additionally, the Fed has been implementing a tightening monetary policy by recently raising the interest rate to 5% to 5.25%. The institution is currently debating whether to continue with further rate hikes scheduled for June. This adds to the uncertainty and potential downward pressure on the cryptocurrency market. According to the CME Fed Watch tool, the probability of no rate increase in the June meeting stands at 73%. At the time of writing, Bitcoin (BTC) is trading at $27,295. Despite potential headwinds, Allemann's analysis indicates a possible upward trend for Bitcoin.
This article is not investment advice. Anyone considering investing should do their own research and take their own risks.
