The Bitcoin price has been trading within a defined range for nearly a month with dropped volatility despite the volume continuing to remain within a range since April. The accumulation has now been prolonged, which may appear to be no less than a healthy accumulation that may result in a bullish breakout beyond the current highs.
In the long term, Bitcoin is forming a bullish pennant, and the price has been trading within this pennant, awaiting a massive breakout. However, Bitcoin volatility is extremely low, and whenever the volatility reaches much lower levels, the markets will make a big move in the near future.
The above chart specifies the volatility chart and flashes a green signal whenever volatility is very low. Previously, whenever the indicator flashed a green signal, the market turned extremely bullish, flipping the bearish influence. The market switches between two periods, contraction and expansion. Presently, the markets are undergoing a contraction phase, which may result in a bullish breakout very soon.
In the coming week, volatility is expected to rise sharply as the FED’s interest rate is expected to be announced. And hence, the markets appear to be preparing for it. Presently, the risk appears to have been lowered, which may take the prices significantly down. Therefore, as long as the BTC bottom holds, the long-term trend continues to remain bullish.
