**Glassnode: Bitcoin Likely to Move Upwards Sooner Than Expected**
**Bitcoin’s Price Action Looks Weak, But Fed Policy Could Change That**
The leading on-chain analytics firm, Glassnode, believes that Bitcoin is poised to move upward soon, and this expected movement could happen sooner than most traders anticipate. According to Jan Happel and Yann Allemann, the creators of Glassnode, the current price action of Bitcoin may appear weak, but an unforeseen amendment to the Federal Reserve (Fed) policy could set a bullish track for the cryptocurrency.
**Bitcoin Compressed Within a Price Range**
Glassnode highlights that in a volatile environment where bad news is perceived as good news, Bitcoin has been compressed within the price range of $19,000 to $21,000. Additionally, Swissblock’s Bitcoin Risk Signal has reflected a decrease in risk for Bitcoin, indicating a favorable market condition. Despite the weak price action in June, Glassnode predicts an imminent pronounced move for Bitcoin.
**Market Indecision and Awaited Fed Policy**
Currently, the market is indecisive as investors are digesting incoming data, eagerly awaiting the Federal Open Market Committee (FOMC) meeting, and anticipating the Fed’s policy. The key question lies in whether the Fed will proceed with an aggressive rate hike in July and September, or if the weakness observed in the economy’s aggregate demand will sway the Fed to change its course of action.
**Stable Supply Ratio Shows Buying Power for Bitcoin**
Happel and Allemann further elaborate on the stable supply ratio (SSR) metric, which indicates that the current stablecoin has more buying power to purchase Bitcoin. According to SSR, the asset is currently highly oversold. This suggests that Bitcoin is holding steady at the $20,000 level, and an increase in stablecoin market cap share implies an oversold BTC on a daily timeframe, indicating significant liquidity waiting on the sidelines. It becomes a matter of “when” the capital will be redeployed, rather than “if.”
**Bitcoin’s Current Price Level**
At the time of writing, Bitcoin is hovering around the $21,000 level.
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