The co-founders of the crypto analytics platform Glassnode are issuing a warning that Bitcoin ( BTC ) may be heading for a severe correction after its historic $100,000 breakthrough. Jan Happel and Yann Allemann, who go by the handle Negentropic, tell their 63,200 followers on the social media platform X that the Bitcoin Fundamental Index (BFI) metric is singling a weakening market. The BFI evaluates several aspects of the Bitcoin market, including wallet activity and transaction volume. When it declines, the risk of a market correction increases. “Not to rain on the parade, but Bitcoin has crossed $100,000, yet the Bitcoin Fundamental Index (BFI) is starting to weaken. Should we be concerned? This indicator often sends early warning signals, and once confirmed, they’re hard to ignore. Take the market peak in Q1 this year as an example: the BFI showed the exit point ahead of a significant correction. For now, we’ll keep monitoring, but the bull run still has fuel left.” Source: Negentropic/X Prior to Bitcoin breaking the $100,000 resistance level, the analysts said the net realized profit/loss metric, which tracks whether Bitcoin holders are selling at a loss or a profit, indicated holders were waiting for higher price targets before they’d likely start taking profits. “Bitcoin traders hold out for higher levels. Another sign of Bitcoin’s price consolidation is traders’ reluctance to take profits in this range. They’re aiming for higher levels, expecting gains once Bitcoin starts challenging key resistances. Once Bitcoin overcomes its resistance and establishes itself above $100,000, we’ll likely witness spikes to the upside on this chart, signaling trader confidence turning into action.” Source: Negentropic/X Bitcoin is trading for $96,579 at time of writing, down 6.8% from its new all-time high of $103,679. Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Follow us on X , Facebook and Telegram Surf The Daily Hodl Mix Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Generated Image: Midjourney The post Glassnode Co-Founders Issue Bitcoin Alert After $100,000 Milestone Is Hit, Say BTC Early Warning Signal Flashing appeared first on The Daily Hodl .
