The situation in trading BTC/USD this week was remembered relatively low volatility and chaotic movements of the exchange rate of Bitcoin in the range from 3550 to 3750 dollars. Chief analyst, eToro’s Mati Greenspan believes that such behavior of the asset is a good sign for retracement up to $ 5,000. The longer Bitcoin manages to stay above $ 3,500, the higher it will “jump” in the end.
Not one step back
In a long period of time, i.e. from 6 months to 1 year, the main cryptocurrency to be traded in the channel between lines 3000 and 5000 dollars. In this last month Bitcoin is not beyond the levels of 3550 and 4200 dollars.
As we have insisted since mid-November, the current trading range for cryptocurrencies lies in the range from 3000 to 5000 dollars. It seems that the Bitcoin has also created a new channel with even more narrow. Until there is a sharp break above or below the channel, tell us, unfortunately, nothing.
It is noteworthy that over the past two weeks the volatility of Bitcoin is in phase with a steady decrease. Blockforce Capital CEO Eric Erwin noticed the lack of sharp price spikes on the chart cryptocurrencies.
Despite occasional price rises in December and January, the average volatility for the last 14 days has been steadily decreasing. From November and till today it fell more than twice. This is the lowest market volatility since mid-November 2018.
Erwin is also counting on the explosive growth of Bitcoin in the very near future.
On the chart of an asset begins to form a bullish flag, which contributes to the level of support in the area of $ 3,500. The possibility of a break of the pattern in the near future is very large, though the direction of the price movement remains open to question.
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