Glassnode Analysts Predict Bitcoin Crash Without Improvement in Current Scenario

• Downside risk for Bitcoin if liquidity and network growth do not improve.
• Upside potential if critical supports hold.
• Indicators suggest possible formation of a market bottom.

The co-founders of market intelligence platform Glassnode have issued a warning about a potential Bitcoin crash if certain market conditions do not improve. In a recent discussion on social media platform X, Jan Happel and Yann Alleman, also co-founders of Swissblock and collectively known as Negentropic, highlighted the risks of a near 4% drop in Bitcoin’s current value in the short term.

At the time of publication, the price of Bitcoin was quoted at US$96.505,53 with a drop of 1,6% in the last 24 hours.

According to experts, weak liquidity in the market and a decline in the network growth metric are the main warning signs. This metric evaluates the number of users and transactions, and is crucial for the stability and appreciation of the cryptocurrency.

“Bitcoin Update: After a hotter-than-expected inflation report, BTC grabbed liquidity at $94.000, peaked at $98.000, but is now pulling back to $96.000. Weak liquidity plus declining network growth equals warning signs. If conditions don’t improve, a collapse to $92.000 could be next. Stay tuned!”

Bitcoin update: After a hotter-than-expected inflation report, BTC grabbed liquidity at $94K, peaked at $98K, but is now pulling back to $96K.

Weak liquidity + declining network growth = warning signs. If conditions don't improve, a breakdown to $92K could be next. Stay sharp! pic.twitter.com/oLogiK6Pct

— Negentropic (@Negentropic_) February 13, 2025

On the other hand, analysts note that if Bitcoin holds key support levels in the $90.000 range, it could pave the way for a potential rally.

“Another sign that Bitcoin may have found a bottom before a push towards $100.000 is the regime shift, showing early signs of a trend change. Choppy price action could continue even with a retest of $95.000, but as long as that zone holds as support, BTC could solidify its move into the bullish quadrant.”

Additionally, experts mention that the Bitcoin Risk Signal, an indicator comprised of a proprietary data set including Bitcoin prices and on-chain trading metrics, suggests that a market bottom may be forming.