While traders made much ado about the latest price action in the Bitcoin market, volatility, in reality, has been extremely low; It’s been over two weeks since the cryptocurrency market has seen a bout of massive volatility – something that is can be improbable in bull and bear macro trends.
But, analysts have started to prepare for a “big move”.
Prominent trader The Crypto Dog recently noted that “crypto is feeling like the calm before the storm”, before adding that he’s anticipating “some big moves by the end of the week.”
And, the one-day Bitcoin volatility index on BitMEX is starting to “get closer to the move which precedes big candle BTC moves”, analyst Chonis observed recently. Indeed, as the chart below shows, Bitcoin’s volatility reading enters that region prior to immense bouts of upward or downward price action.
While he didn’t identify what cryptocurrencies he expects to move, and in which way, Bitcoin is likely to dictate the nature of said “big moves”.
$crypto feeling like the calm before the storm right now… I’m anticipating some big moves by the end of the week.
– The Crypto Dog? (@TheCryptoDog) October 8, 2019
The Crypto Dog isn’t the only one expecting volatility in the price of BTC. In their trading Telegram channel, analyst CryptoHamster argued that there is a multitude of signs hinting that BTC may soon spike in some direction:
“Volatility is getting lower, volume is dropping, Bollinger bands are getting tighter, squeezes to both sides – it seems like we are approaching to a big move.”
Bitcoin Leaning Bullish, Analysts Argue
While many are divided about the direction that said “big move” will take Bitcoin, there are a copious number of analyses showing why the cryptocurrency may head higher – at least in the short run.
Amsterdam Stock Exchange trader Crypto Michaël recently noted that Bitcoin’s short-term view looks positive, as the cryptocurrency has held a range low and moved up to a range high. This could be interpreted as a sign that BTC is consolidating with a bullish bias. He added that the cryptocurrency’s long-term charts are seemingly bullish, explaining that a bullish continuation trendline is forming.
$BTC #BITCOIN
Bigger view; looks pretty good to me. We might have got our new trendline for bullish continuation here. Looks quite similar.
Smaller view; Nice, range low still holding and moved up to range high. Probably continuation of the ranging here. Great daily.
– Crypto Michaël (@CryptoMichNL) October 7, 2019
That’s far from the end of it. On Tuesday, Financial Survivalism pointed out that Bitcoin’s monitor from the last week of Oct until now is looking a lot like each textbook Wyckoff Accumulation shape that technical analysis legend Richard Wyckoff identified in his surveys. He notes that if “this current pullback (referencing all of the fall from $8, 350 to $8, 100) takes its higher low above $8, 000, then I would mull over the Wyckoff Accumulation confirmed”.
Should this guidance bullish pattern play out in whole, Survivalism suggests that Bitcoin are likely to return above $10, 500 in around a week’s point in time.
So yes, it seems that bulls might step in when the move hits.
But then again, trading in asset areas is all about probabilities, not certainties.
