Bitcoin’s consolatory phase
This week in BTC we in essence closed were we started, at the 78% retracement at $9,249. Combined with last week’s doji candle we have seen the least amount of volatility in the market for quite some time. We have also seen a decrease in volume in BTC over the last three weeks. All of this has certainly put a hold on a rally getting up past $10,000 and after touching the 50-day moving average with today’s lows it is clear we have entered a time frame of sideways trading.
According to Bloomberg analyst, Mike McGlone contends that Bitcoin is consolidating. He speculates that due to the decreasing volatility, Bitcoin price Bollinger Bands are at its lowest point ever.
He takes a deeper look and comparers Bitcoin’s current volatility to that of gold. “Its 260-day volatility, at about 4.4x that of the same gold measure, is the lowest since April 2017. The average is around 6.4x and the peak was 12.2x in 2011.”
Other analysts have called for a boring rest of the year and price not breaking above $10,000 or below $6,000 until 2021.
Whether or not you agree with these analysts I think we all could agree that bitcoin is in some sort of consolatory period and that is good for Bitcoin’s future outlook.
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