The Bitcoin price broke out today due to the $10,800 news about Square. Analysts were already anticipating an outbreak. Raoul Pal expects a ‚big move‘ in the short term, reports BTC Times.
Bitcoin and volatility
Volume and volatility have been very low in recent days. The CEO of the Real Vision Group shares a tweet in which he highlights the historical (static) volatility of the share price.
The standard deviation of 30-day volatility is at a very low level. The value represents the return that Bitcoin has achieved over the past 30 days.
It has only happened 7 times since 2016 when it fell below 20%. And each time it has happened, it has been followed by a significant price movement (usually upward).
The former manager at Goldman Sachs, who has a substantial stake in Bitcoin, finds the drop in volatility remarkable.
„Of the 7 cases where volatility fell to 20%, this led to 6 price explosions. Only once, in November 2018, did the price fall even more. Anyway, brace yourselves.“
Since 3 September, the price has fluctuated between the levels $10,000 and $11,000. The trading volume has also decreased since August, a bad signal.
Nevertheless, the price remained stable despite a number of negative reports. On Friday, the industry was shocked by the intervention of CFTC and the Ministry of Justice at BitMEX. CEO Arthur Hayes and his co-founders are now inactive.
US President Donald Trump was affected by the Coronavirus and refused to provide a new capital injection to the US economy. As a result, prices on the financial markets fell.
Crypto Method, however, found its bottom at $10,380 despite bearish signals on the charts.
Recovery above $10,500
The fact that the price is now recovering above $10,500 is a positive sign, according to Santiment researchers. They are doing extensive research on movements on the Bitcoin blockchain. Based on this they measure sentiment in the market.
But as analysts have repeated this week, the price has to conquer that resistance zone at $11,000 to enter new bullish territory. A tweet from analyst and trader Josh Rager on 5 October is still relevant.