Crypto analyst sees “very big move on the horizon” for Bitcoin as volatility falls below 25 points
Although the cryptocurrency sector appears to be sailing on calm waters at the moment, certain indicators suggest that it may just be the calm before the storm, at least for its biggest asset, Bitcoin (BTC).
In fact, Bitcoin’s volatility index has fallen below 25, which historically meant “a guaranteed recipe for massive volatility,” crypto trading expert and analyst Michaël van de Poppe said in his chirping on 10 October.
Van de Poppe noted three historical scenarios that could predict this massive volatility by comparing Bitcoin’s volatility and price charts. The first was a crash to $3,000 in 2018, followed by a break above $4,000 to $14,000 in 2019, as well as a “break above $10K in 2020 (kickstart bull 2021)” or “twice up, once down (November 2018) , ” as Alex Krüger, who first noticed the pattern, so.
In another tweet, Van de Poppe stressed that he also “expected severe volatility to jump in with CPI and PPI,” referring to the Consumer Price Index and Producer Price Index reports for September due out this week.
What kind of volatility awaits?
Considering the historical behavior pattern of Bitcoin, this volatility can either go up or down. Like another cryptanalyst Ali Martinez noted“Bitcoin Loses $19,000 Support Level Could Mean Trouble.”
Previously, Martinez dubbed this level as “the most important support level (…) where 1.3 million addressees bought over 680,000 BTC. BTC must hold above this demand zone which IntoTheBlock IOMAP shows little or no support below it.”
It’s also worth noting that recent data indicated that Bitcoin’s volatility appeared to be cooling compared to traditional stocks — the Dow Jones index — as both asset classes continued to battle adverse macroeconomic factors such as high inflation and interest rates, as Finbold reported .
Bitcoin price analysis
Meanwhile, Bitcoin was trading at $19,265 at press time, down 0.74% on the day but up 0.39% over the past seven days.
As it stands, the market cap of the largest digital asset by this indicator is currently $372.54 billion, according to CoinMarketCap data.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
