The recent drop in the price of Bitcoin (BTC) has caused many to begin to analyze in more detail what may be to come in the coming days. Given this, Bloomberg has published that optimistic feelings about this cryptocurrency can be maintained in the near future.
To draw these conclusions, Bloomberg took into account the low volatility that the leading cryptocurrency has had in recent weeks and the way in which this has influenced the development of the Bollinger bands.
The analyst in question was Mike McGlone. According to him, what we are witnessing is the consolidation of Bitcoin. Thus, the Bollinger Bands of the Bitcoin price are at their lowest point.
Bollinger bands are a widely used instrument not only in the analysis of cryptocurrencies, but also in Forex. If you are curious about this point, you can check our article about it.
Bitcoin price: Bloomberg opines
Until now, Bitcoin whales have not been very active, especially when compared to their activity in mid-June when the accumulation of BTC tokens was evident and noticeable.
In order to overcome resistance levels, McGlone explained that BTC must break above $ 10,000 and even exceed $ 13,000. All this must take place in order to truly speak of a bullish Bitcoin rally. He also stressed that it is critical that the price does not drop below US $ 6,500.
Finally, to put it in perspective we can quote part of McGlone’s analysis. “Its 260-day volatility, about 4.4 times that of the same measure of gold, is the lowest since April 2017. The average is around 6.4x and the peak was 12.2x in 2011” he commented. That is, bit by bit Bitcoin has been getting closer to gold.
However, it should be mentioned that this is not the most optimistic prediction made by Bloomberg in recent months. At one point they even said that BTC could regain all-time highs of $ 20,000, even hitting a new high of $ 28,000.
Although it is true that McGlover sees signs that may indicate a bullish break in the near future, we must highlight that at this moment BTC is still caught in a “routine”, trading below US $ 10,000.
The recent events of this cryptocurrency, such as the 1% drop in its value, have a more or less clear explanation.
June’s BTC options recently expired, and Thursday is statistically the most volatile day of the week with the highest trading volume. The latter can be seen in research conducted by cryptocurrency data firm Market Science.
Thus, the volume and volatility that generally decrease on Fridays, leading to a quiet weekend for the Bitcoin market.
What’s interesting is that unlike Bloomberg, for some analysts, Bitcoin’s inability to top $ 10,000 indicates a possible loss of bullish momentum, and they even consider it a sign of weakness today.