The co-founders of the market intelligence firm Glassnode think crypto is in the midst of a bottoming phase as the bears and bulls “fight it out.”
Jan Happel and Yann Alleman, who go by the pseudonym Negentropic, tell their 63,600 X followers that digital assets are still in a structural macro bull market, with Ethereum (ETH) and Solana (SOL) showing signs of strength.
“On-chain flows are showing that fundamentals are still intact.
This market, as we have been stating, is for setting deeper limit orders to catch wicks and lower the cost average to be ready for when the momentum turns.
Avoid leverage as volatility can spike short term.
We are close; the longer the consolidation, the stronger the move.”
Happel and Alleman also note that the key level for ETH to hold is $4,100-4,200.
“If we lose that, we increase the chances to revisit the $3,800-3,900 levels, that would be a great place to set a cost average in if we get that opportunity. It all comes down to liquidity.”
The Glassnode founders say investors should brace for short-term volatility but argue that the long-term setup is strong.
ETH is trading at $4,313 at time of writing and is down nearly 2% in the past 24 hours. Meanwhile, SOL is worth $201.
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