Bitcoin $96,137.04In recent weeks, it has been traded between $ 91,000 and $ 109,000. The fact that price movements follow in a narrow range is considered by market analysts as a long -term consolidation process. Volatility indicators also decline to historical levels and confirm the calm course on the market. However, this horizontal movement can prepare the ground for a sudden price change in the coming days.
Bitcoin entered the consolidation process
Market data show that Bitcoin is traded with low volatility. The two -week volatility fell to 32 %on an annual basis. Volatility decreased below 50 %in four weeks. These indicators show that price movements are stuck and Bitcoin approaches an important breaking point.
Analyst Checkmate examined the weekly “Choppiness Index” data and said Bitcoin has been in the longest consolidation since 2015. In similar past periods, Bitcoin carried out strong up or downward movements. For this reason, the current quiet market will not last long and a big break is thought to be at the door.
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According to technical analysis, the price for a long time in a narrow band can be a harbinger of a strong movement in the market. In the past, such periods often resulted in harsh price changes. Volatility is expected to return after long consolidations.
The expectation of great movement in Bitcoin increases
Volatility is known to tend to return to average. For this reason, Bitcoin’s existing static price range is considered to be a high probability. Investors follow this process carefully. Because with the end of the movement in a narrow band, hard increases or decreases can be seen in prices.
Market observers, Bitcoin’s consolidation period after a strong movement, he says. Technical data indicate that the price can make a hard break up or downward. Although it is unclear in which direction Bitcoin will move, it is foreseen that volatility is inevitable in the market.
In such periods, investors should be careful about risk management. It is important to closely monitor market dynamics in this process where big price changes can be experienced. Bitcoin’s long -term horizontal movement can change the balances in the market.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
