Hovering over the $10,3k price mark for several weeks, Bitcoin finally became stable, reaching its lowest level of volatility since May. The volatility rate in 30 days reached 47%, which is the lowest Bitcoin has ever arrived at since 4 months ago, reveals data from Blockforce Capital.
During the previous month, Bitcoin’s price consistently fluctuated between $10,000 and $11,000, dropping from this year’s highest point of almost $13,000.
With Bitcoin experiencing a sharp rise in price during April, which appeared almost inorganic, market analysts believe that sentiment calmed down and that the entire market is now reconsolidating. For Forbes, Erik Finman stated that ‘Hype has absolutely died down around Bitcoin’.
The famous young investor bought Bitcoin at $10 and became the youngest Bitcoin millionaire at age 18. Commenting on the current situation Finman stated that only ‘true-blue’ mainstream technology could potentially drive adoption and save Bitcoin from its current market situation. The ambitious investor said that there is no mainstream real use case for the digital assets at the moment, that could drive adoption in developed countries. He refers to that fact as a ‘major pain point’ for the sector.
The CEO of BitBull Capital, Joe DiPasquale, also agreed with the sentiment that the market is at the moment consolidating and heading for a new direction. He added that Bitcoin ‘could soon break free of its current range.’
Tim Enneking, Digital Capital Management’s managing director, stated that major geopolitical and macroeconomic concerns are the main factors that could cause Bitcoin’s price to surge in the short-term. He referred to the recent destruction of Saudi Arabia’s oil fields as one of the examples.
Commenting on the possible approval of a US ETF next month, Enneking said that the approval would lead to a price surge. However, he does not believe that the decision, which occurs next month, will play out favorably for the cryptocurrency sector.
Discussing the BTC’s halving, which will occur somewhere in May next year Enneking states that the event will have a positive impact on prices, and that we may probably see a price increase shortly before the halving.
Consolidations historically resulted in a price surge
Bitcoin has severely struggled with its price during the last few weeks, attempting to break out of its current range. For now, price movements that appeared optimistic ended with unsuccessful results. While the long-term market sentiment for the cryptocurrency is more than optimistic, it is still uncertain in which direction Bitcoin will go in the short-term.
According to certain market analysts, Bitcoin may experience a significant price increase, up to 25% or more. However, if we would experience a short-term bear market, the price of the world’s most famous digital asset could reach lower support levels between $7,000 and $8,000.
Nevertheless, such volatility in price is what made cryptocurrencies a fruitful investment asset for almost 10 years. Abrupt price movements have been the core of capitalizing in the sector, with some traders making most of their money at the end of a bull run, massively increasing their initial investment by several times.
The cryptocurrency bear market that followed after a bull run in 2017 effectively reached its end in December 2018 at $3,200. What happened after was a progressive price increase for the next few months, with Bitcoin’s price surging from $4,000 at the start of April to almost $13,000 at the end of June.