Early Signs Of Life: Why Bitcoin Is Likely To Move Away From $30,000 Soon
August 16 2023 - 8:00PM
NEWSBTC
The Bitcoin price action has been stuck in a tight range for weeks
leading to the lowest volatility levels in years. A recent report
hints at a potential breakout from the current range, but which
side will be favorable by the potential spike in volatility?
Related Reading: Bitcoin Speculators Retreat As Long-Term Holders
Double Down Since $69,000 Peak As of this writing, Bitcoin trades
at $28,950 with sideways movement in the last 24 hours. Over the
previous seven days, the BTC’s price saw a slight downtick
recording a 2% loss. Other tokens in the top 10 by market cap are
underperforming, with many seeing double-digit losses on low
timeframes. The Last Time The Bitcoin Price Saw Low Volatility As
seen in the chart below, provided by trading desk QCP Capital in a
report, annualized volatility for BTC reached critical levels seen
for the first time in over five years. The metric last stood at
these levels from late 2018 to 2019. The chart above also shows
that volatility fluctuated from the low to the yearly high in a
cycle that extended for 2019. At that time, Bitcoin and the crypto
market were coming out from a prolonged bear market that, as today,
left traders and market participants in shambles and with almost no
appetite for risk. QCP Capital noted that from 2018 to 2019, the
macroeconomic landscape dominated the Bitcoin price action. At that
time, the US Federal Reserve (Fed) hiked interest rates, but the
COVID-19 pandemic, which operated as a catalyzer, forced it to
reverse. The latter occurred from late 2019 to 2020, when the ease
in macroeconomic conditions allowed Bitcoin to soar to a new
all-time high. Thus, the trading desk believes that a catalyzer is
needed to push the price action back to life: The last time trading
was this compressed, it was during the crypto winter of 2018 and
2019, and it took a change in the macro environment to revive the
market again. However, they noted that the break of the current low
volatility environment is not “imminent.” However, the upcoming
decision on a Bitcoin spot Exchange Traded Fund (ETF) in the US
could operate as a catalyzer, bringing BTC to its next resistance
level at around $34,000, but patience is still required. Related
Reading: Bitcoin & Top Assets See High Loss Taking, Is This
Bullish? QCP Capital concluded: Will there be a sharp rally that
takes us to the 34k resistance – like the prior three times which
kissed the support trendline this year? We think it could still be
another quiet few weeks before we find out. Cover image from
Unsplash, chart from Tradingview
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