Notably, co-founders of market intelligence platform Glassnode Jan Happel and Yan Allemann have plotted a possible path through which Bitcoin may return to $30,000 in the coming weeks.
According to the analysts, the Bitcoin Risk Index has now dipped into the 60s, indicating there is an ongoing shift to a positive sentiment around the asset. This means that more investors are beginning to view Bitcoin as a favorable investment.
The US Consumer Price Index (CPI) jump by 0.6% was expected to stir the BTC price, and it has.
Reclaiming support above $26k, BTC's now eyeing a breakout past $27k, potentially exiting a multi-week range.
If these sentiments translate into buying pressure, Bitcoin could embark on an upward trend. However, the Glassnode co-founders predict the token will face significant resistance at $27,400 and $28,200, as traders could opt to take profit at these price levels.
However, the analysts predict BTC will eventually overcome these barriers, pushing through to the $30,000 price mark, which they described as a “psychology barrier.”
While a rise in transaction fees could represent network congestion, which is known to drive network users away, it could also mean there is a high level of adoption.
Furthermore, Into The Block also reported that Bitcoin recorded exchange inflows of $10 million and outflows of $70 million.
The high level of Bitcoin being moved off exchanges indicates rising investors’ interest in the cryptocurrency, which could also translate into a notable price gain.
However, it is worth stating that these are only predictions and should not be counted as investment advice.
