Bitcoin has been anything but volatile this week.
Consolidation has ruled since its big China driven pump on Monday but this
decline in volatility may be the precursor to bigger things as it has in
Is Another Bitcoin Rally Coming?
Over the past 24 hours BTC has done very little. The four day consolidation has continued as Bitcoin trades on the 50 hour moving average around $11,800 according to Tradingview. There has been no retest of $12,000 and it bottomed out at $11,650, so a tightening channel is forming. This is usually a sign of a larger move to come and it could be to the upside if volatility is considered.
One crypto trader has looked at the volatility charts and correlated
it with recent Bitcoin price rallies. Over the past two months the volatility
has decreased twice before the next significant move up. A similar pattern is
developing now as BTC trades sideways.
“Decrease in historical volatility (yellow zones) as the precursor of the growth start. The magnitude increases with each cycle, so this time the reaction (price growth) might come slightly later.”
This interesting angle could be tied in with volume which
has also slid this week. During Monday’s spurt to $12,300, BTC volume increased
to $24 billion, by the end of the week volume had dropped almost 30% to $17
billion, but price had only declined 3.5%.
Analysts are in agreement that a breakout is imminent but as
usual, none of them have a crystal ball so direction is just guesswork. Resistance
currently lies at $12k and this has proven to be quite a strong level to break
in recent days. Above that lies the $12.4k and $13k levels while on the low
side there is strong support at $11.5k.
Altcoins Frozen Over
have had a miserable week with many of them dumping double digits since
Monday. There is no change on altcoin markets as we start the weekend and a sea
of red is all enveloping. Ethereum is still weak, hovering just above $210 as
its market share drops to a 2.5 year low. At 85% down from its all-time high
many are looking at ETH as a better bet for shorter term profits but at the
moment the world’s second largest crypto token is totally deflated.
XRP has made it back over $0.30 but only just as Bitcoin
Cash continues to fall, now below $320. Litecoin, which has just been recognized
by the IMF, is also getting dumped still as LTC drops to $85 as all halving
gains are liquidated. Nearly all the altcoins are in decline this Saturday as
Bitcoin holds steady in preparation for another big move.