Bitcoin’s Volatility Signals Pressure on Bulls, is $5,000 a Possibility?

By Lujan Odera
Published December 13, 2019 Updated December 13, 2019
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Bitcoin’s Volatility Signals Pressure on Bulls, is $5,000 a Possibility?

By Lujan Odera
Published December 13, 2019 Updated December 13, 2019

Bitcoin’s (BTC) volatility has been at a low through 2019 as the coin recorded the most consecutive days changing 5% or less on December 13, 2019.

Bitcoin’s volatility has been its undoing as the rise and fall in value of the pioneer cryptotoken has seen users set the coin aside, at least as a currency. Billionaire and NBA’s Dallas Mavericks owner, Mark Cuban, is the latest BTC critic to question BTC’s use as a global currency, stating the issue with volatility.

BTC’s volatility squeeze signals major move in price

The unending questions and skepticism regarding BTC’s volatility however seem to be far-fetched as data from Skew Markets shows. Bitcoin is entering a low volatility regime for the first time since 2018 as the coin recorded 131 consecutive days trading within a 5% range.

Low volatility regimes signal a major move in either side in the coming days as Bitcoin bulls and bears ready their accounts. `The directional bias looks set to end with volatility dropping to multi-week lows and the charts signaling a move higher in the coming days. The long timeframe charts however spell doom for BTC, some analysts call $5,000 USD price range months before the halving.

BTCUSD on the edge as $5,000 reckons

A rectangular pattern is forming on the daily candle charts signaling an upcoming bullish momentum. The price has traded sideways in the past few days with both bears and bulls exhausted, amplified by the dropping trading volumes since late 2018. Following the undecided nature and volatility dropping to levels last seen in October, a day before the infamous Xi bull run, the market prospects look fairer to bulls.

BTCUSD
Source: TradingView

BTC/USD bounced off the resistance level at $7,149 USD, trading over $100 USD higher to $7,261 USD as at time of writing. The short soar in price should be a catalyst for bulls to take over the market. A run that could see the price test the $7,900 USD region before a drop towards the lower resistance on the weekly bearish channel.

BTCUSD
Source: TradingView

Looking at the weekly charts, the price of BTC/USD signals a drop towards the $5,000 region as chart indicators signal an upcoming bear market. The dropping volumes in a wedge pattern further show low interest in bulls taking over the market.

Can bulls prevent the price drip to $5,000 USD?

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Lujan Odera
396 Articles
Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist. Follow him at @lujanodera.

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