Glassnode signals positive Bitcoin price outlook despite recent price drops

IconCryptoNewsTerminal Staff24 Jul, 2024

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Glassnode signals positive Bitcoin price outlook despite recent price drops

Glassnode co-founders Jan Happel and Yann Allemann recently shared an X-account labeled as Negentropic. In their post, they noted that Bitcoin (BTC) has been trending down during June due to factors such as the German government sell-off and the Mt. Gox news. However, they also highlighted that the Bitcoin fundamentals index (BFI) has started an uptrend, suggesting that the network fundamentals are getting stronger. The BFI measures the state of the Bitcoin network using a set of on-chain metrics related to liquidity and growth. A value above 50 indicates strong fundamentals. The positive divergence between price and BFI suggests that the uptrend has more room to run. This is a bullish signal for Bitcoin, as it indicates that the underlying fundamentals of the network are improving despite the recent price weakness. Investors should keep a close eye on the BFI in the coming weeks and months to gauge the strength of the Bitcoin market.

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