For Bitcoin’s price is an upward breakout imminent?
The twitter hack sure garnered a lot of attention to the largest crypto asset, Bitcoin. However, the incident did not manage to shake it out of its price slump. Even though the price dipped by a little and reached its immediate support at $9k, the BTC market continued its stagnated journey. This noted the 24th consecutive day in which BTC failed to move more than 5%.
According to Twitter user @ceterispar1bus, this was the longest since a 27-day streak that ended on 1 April 2019. However, as the streak ended in 2019, BTC returned 31% in a month. To be fair, the price of Bitcoin was $4,052.56 on 1 April 2019 and the 31% rally, pushed it up to $5,287.40. The price of the asset did not stop escalating and gave rise to a bullish market that peaked at $13,880 on 26 June, after which the price gradually noted a decline.
Previously, a similar trend was visible when the BTC price had not moved by at least 5% daily for 29 days. This ended on 13 November 2018. After this phase, BTC’s price fell by 49% within a month. This caused the price to drop from $6,298.47 to $3,441.13.
Thus, the above instances proved that after a long phase of what can be considered a consolidating phase, BTC price tends to erupt. The analysts have been assessing to interpret the direction of the breakout, however, with volatility being tightly wound, most arguments seem speculative.
A Twitter user @CoinRuleHQ shared a Bitcoin volatility chart to highlight the state of the market.
The Bitcoin skew rallied a little to a local high indicating an increase in short-term cautiousness, however, the overall market was not very concerned. The implied volatility remained dormant, which is the main indicator of the users’ expectation of the asset’s price. Thus, this stagnant market could lead up to an extremely volatile market, however, the direction of the breakout cannot be ascertained yet.