Bitcoin, the world's largest digital asset, has been exhibiting stagnant price movements for a long time, but recent chart patterns and historical trends suggest that an increase in volatility may be on the horizon.
Bitcoin Recession May End With ETF Approval
Various indicators reflecting Bitcoin's price fluctuations have hit almost record lows over the past month, coinciding with the coin's consolidation of around $30,000.
Potential triggers for an exit from this low volatility environment include the highly anticipated decision of the US Securities and Exchange Commission (SEC) on applications for the launch of spot Bitcoin exchange-traded funds (ETFs).
Especially BlackRock Inc. and other firms have submitted applications that, if approved, could increase demand for Bitcoin.
In response, many crypto analysts expect this stagnant market to end soon. According to the latest data, Bitcoin is having the longest bear season in its history.
On the other hand, when the important data is examined, it is seen that Bitcoin exhibits a falling wedge formation, which is often interpreted as a bullish signal by chart analysts.
Breaking the upper limit of this pattern could trigger a potential rally.
“We've moved into a positive trend in Bitcoin,” said Tony Sycamore, market analyst at IG Australia Pty, adding that technical indicators point to a bullish potential towards $34,000.
Notably, Bitcoin's 30-day historical volatility is hovering near the 20 mark after a significant drop. Bloomberg News analysis reveals that these levels have only occurred about 2% over the past decade.
Situations where the metric drops below 20 and then rises above it are even rarer, occurring seven times in the last ten years, with Bitcoin on average showing a 16% increase over the next 30 days.
*Not investment advice.