“Sellers Have No Ammo”: Glassnode Co-Founders Predict Imminent BTC Move

While many factors can influence Bitcoin’s price, analysts Yann Allemann and Jan Happel, the co-founders of Glassnode, believe one particular metric will likely determine its next major trend and that is global liquidity.

They argued via their X account, Negentropic, that only a shift in money supply can break the current deadlock in the market.

According to the analysts, Bitcoin has slowed down after its latest price rally and has not broken down. They noted that BTC sellers have no “ammo,” and the buyers are not stepping in, leaving the market in a relatively stagnant condition. However, the analysts believe the present market condition will not last, as liquidity is gradually returning.

In the concluding part of their post, the analysts noted that the window for Bitcoin bears to push the price lower is about to shut down, considering that it remains only four days until M2 liquidity returns. Notably, M2 liquidity refers to the liquidity metric used to classify money supply in the Eurozone and America.

It is worth noting that Bitcoin analysts believe that the cryptocurrency’s price tends to lag behind changes in M2 supply. Meanwhile, data from the Federal Reserve Bank (FRED) shows that M2 peaked at 22,055.1 on April 14 and stood at 22,005.4 as of July 30.

The metric currently reflects a bullish momentum, aligning with the projection by Allemann and Happel, who suggested that liquidity will soon return to the market.

TradingView’s data shows that Bitcoin traded for $114,008 at the time of writing, reflecting a 2.09% rebound from a recent pullback, which saw the flagship cryptocurrency decline to $111,919 for the first time after climbing above $120,000.

Most analysts believe in a long-term bullish trend for Bitcoin, and the projection by Allemann and Heppel aligns with that, considering the expectation that liquidity is about to return to the markets.