Glassnode Analysts Predict Market Weakness After Bitcoin Hits $100K

Glassnode's co-founders, Jan Happel and Yann Allemann, are issuing a cautionary message regarding Bitcoin's (BTC) recent surge past the $100,000 mark, suggesting that a major market correction could be on the horizon.

The duo, known by their online persona Negentropic, highlighted a concerning trend in the Bitcoin Fundamental Index (BFI), which measures key indicators like transaction volume and wallet activity.

Not to Rain on the Parade, But… 💭

Bitcoin has crossed $100K, yet the Bitcoin Fundamental Index (BFI) is starting to weaken.

Should we be concerned? 🤔

This indicator often sends early warning signals, and once confirmed, they’re hard to ignore. Take the market peak in Q1… pic.twitter.com/MnuJtmrB9V

— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) December 5, 2024

They noted that as the BFI weakens, the risk of a pullback increases. This metric has previously served as an early warning system, with similar declines signaling a potential market downturn, like the one seen earlier this year.

Despite Bitcoin’s impressive rally, the analysts suggest that the current market behavior is reminiscent of a plateau, where traders are hesitant to take profits.

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This hesitation indicates a wait-and-see approach, with many holding out for even higher price levels. However, they also believe that if Bitcoin can secure a strong position above the $100,000 resistance, it could trigger a wave of buying, pushing the price even higher.

Bitcoin Traders Hold Out for Higher Levels 📊

Another sign of Bitcoin’s price consolidation is traders’ reluctance to take profits in this range.

They’re aiming for higher levels, expecting gains once Bitcoin starts challenging key resistances.

Once #Bitcoin overcomes its… pic.twitter.com/t710vMRRvk

— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) December 4, 2024

In summary, while the bull market is far from over, the Glassnode founders are urging caution and keeping a close watch on the signals from the Bitcoin Fundamental Index. A correction could be approaching, but if Bitcoin continues to break resistance levels, the momentum may carry it further.

Alexander Zdravkov

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.