A fundamental shift in technical analysis suggests that the bulls should treat $48,000 as the new $35,000, says Glassnode. Bitcoin has seen some ‘unreal’ price consolidation since the beginning of February 2021 and the fundamental support seems to have formed now at $48K.
Based on data from on-chain monitoring resource Glassnode, the second month of the year has been a formative period for bitcoin like nothing else.
Bitcoin Surpassed $35,000 A Month Ago
While discussing the current state of the BTC network, co-founders Yann Allemann and Jan Happel explained that many price indicators have already been allowed a ‘reset’ in February. They wrote in a February 17 tweet:
“The amount of consolidation Bitcoin has seen since January is unreal. It really allowed fundamentals to catch up and indicators to reset. Looks like $48k is the new $35k now.”
This buoyant perspective adds fuel to the bullish momentum hoping that $50,000 will turn into a strong foundation without a significant correction. Bitcoin took the $50,000 level for the first time this week.
Despite hovering around the $50K mark, any plunge was rapidly bought up, indicating that the solid buyer support in place at higher levels irrespective of the speed of the price gains or any negative external narrative that surrounds bitcoin. While responding to the Glassnode findings, statistician Willy Woo added:
“Under capital flow models, it would take a black swan to break $36k on a daily close.”
He described BTC’s current position as hovering in the ‘middle phase’ of a parabolic bull market.
Saylor Says That No More 80% Pullbacks Will Arise
Allemann and Happel were not alone in their projection. Michael Saylor, CEO of MicroStrategy, during his latest appearance on the podcast series from “The Bitcoin Standard” author Saifedean Ammous over the weekend, he alleged that bitcoin would not experience another 80% price pullback as it happened in 2018. He told Ammous:
“The volatility is not the same; if you look at the drawdowns, they’re not the same. Like when Bitcoin ran up to $40,000 and traded back down to $30,000, that was a 25% retracement, not an 80% retracement.”
MicroStrategy plans to acquire a further $900 million worth of bitcoin in the near term according to their official announcement earlier this week.