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.
Bitcoin has entered a low volatility regime since mid 2018 pic.twitter.com/OIBDFDqG6V
— skew (@skewdotcom) December 13, 2019
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.
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.
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.
I think it will pause and bounce at a few different levels before continuing downward, possibly under $5000, before the market turns bullish again. But with BTC, predictions only count until the next big news event changes the rules of the game.
— Polar Nerd (@Polar_Nerd) December 13, 2019
Can bulls prevent the price drip to $5,000 USD?