As has been expected, Bitcoin has yet again fallen below $8,000 after making a good start of the week and surging to $8,300 level, as the leading cryptocurrency has been doing all October.
It’s been a month now that Bitcoin is trading around $8k, unable to make a strong move. As such, Bitcoin volatility has been on the decline since July 15, when Bitcoin dropped to $10,700, hitting 2.30% on Sept. 16. as per the Bitcoin Volatility Index.
Who said bitcoin was volatile?
Bitcoin realized volatility drifting back towards historical lows – moved < 2% daily over the last 10 days pic.twitter.com/XFflXjjNC5
— skew (@skew_markets) October 21, 2019
But volatility could soon be back in the market for the flagship cryptocurrency.
One technical indicator suggesting this is the difference between the digital asset’s upper and lower band in the Trading Envelope Indicator that is at its narrowest since mid-September. A similar narrowing was registered last month that was followed by a drop of over 12%.
Crypto investor and trader Josh Rager also points out how not only the Bolinger bands but also the historical volatility (HV) indicates that a “major move is brewing.”
“With a slow sideways market, we'll see descending HV that indicates a strong reaction in price action ahead and rise in volatility,”
Meanwhile, Matt Maley, equity strategist at Miller Tabak + Co., said,
“As it becomes more and more obvious that the Libra thing is not going to take off (…) the volatility will pick up again.”
The issue with Libra and Facebook, he said is a definite “headwind” that is “not going to go away.”
What Does the CT has to say about Bitcoin Price?
At the time of writing, Bitcoin has been trading at $7,979 with 24 hours loss of 3.50%, as per Coincodex. Trading volume is not showing any signs of recovery either at just $282 million.
Bitcoin dominance meanwhile has been on the decline since early Sept. and is currently at 68.8% as per TradingView.
$BTC dominance road to 75-80% by EOY.
Hide yo kids hide yo wife hide yo alts. pic.twitter.com/GNIdVAkJr1
— Galaxy (@galaxyBTC) October 21, 2019
But what exactly is coming in the near future?
According to analyst DonAlt, the Bitcoin chart “looks absolute garbage.”
Analyst The Cryptomist meanwhile, says if Bitcoin bulls defend the $7,900 region and the support 6hr RSI has reached, we could see a bounce and “things can turn bullish very quick.” But if bull fails to do so, low $7,000 is likely to happen.
Trader Johnny Moe is expecting another 22% drop that will take BTC to $6,200.
Wait for it… https://t.co/L6jajUoOcT
— Jonny Moe (@JonnyMoeTrades) October 23, 2019
Market analyst Crypto Wolf, however, is bullish on BTC currently. A close below $7,790, he says would be bearish for the digital asset while reclaiming $8,200 would be bullish for BTC price.