The post Bitcoin: Why a BTC jump to $70K shouldn’t be a surprise appeared on BitcoinEthereumNews.com.

There’s increasing analysts’ consensus that BTC’s recovery could extend to $70K.  However, the recent BTC bounce was preceded by over-leverage–a potential price risk. According to Glassnode founders Jan Happel and Yann Allemann, Bitcoin [BTC] was in a great position to retest $70K. The duo, who go by Negentropic on X, warned that speculators eyeing to short the crypto at $68K or $69K could be severely liquidated.  ‘Shorts eyeing this long-term #Bitcoin compression range will be liquidated when the $68k to $69k level is surpassed…’ Source: X/Negentropic The marked compression channel was part of the megaphone pattern chalked as BTC continued consolidating following the new high hit in March.  Why BTC could rally to $70K According to Glassnode founders, through their crypto insights platform Swissblock, BTC could hit $70K because of current low-risk levels and an uptick in network activity. The founders also noted that BTC’s rally to $64K flipped the asset’s risk profile from high to low.  Source: Swissblock Interestingly, the May, June, and July recoveries happened after the asset flashed a low-risk profile. Hence, the trend might repeat and tip the crypto to $70K.  Additionally, Swissblock cited an improved Bitcoin network growth that could confirm the sustainability of the uptrend.  ‘The network growth is resuming its upward trajectory and even challenged the highs seen in July, where we not only witnessed notable growth but also the breaking of a downward movement that had occurred post-halving.’  Source: Swissblock Network liquidity lagged growth, but the analytic platform highlighted signs of slow improvement that could boost BTC.  Besides, the negative funding rates in BTC perpetual markets could accelerate the recovery, per Swissblock.  ‘The funding rates of perpetual futures have not only remained negative since our last reading but have also increased in magnitude: Highly unusual for times of bullishness. This positioning is…

---

Filed under: News - @ August 25, 2024 11:02 pm