Cryptocurrency
Bitcoin Interest Wanes As A Violent Breakout Looms
Forbes reports, “Since the halving, bitcoin’s price has traded mostly between $9,000 and $10,000, compared to the red hot DeFi and “alt” coins that regularly post triple digit returns. In recent weeks, bitcoin’s range has tightened with many analysts noting a potentially violent price breakout on the horizon. However, there is no consensus on which […]
Forbes reports, “Since the halving, bitcoin’s price has traded mostly between $9,000 and $10,000, compared to the red hot DeFi and “alt” coins that regularly post triple digit returns. In recent weeks, bitcoin’s range has tightened with many analysts noting a potentially violent price breakout on the horizon. However, there is no consensus on which direction the breakout will assume.
“Charles Edwards, Founder of Capriole Investments, suggests bitcoin’s fundamentals have never looked better. ‘I have a very bullish outlook in the mid to long term. For example, energy value is at all time highs, suggesting BTC is more valuable than ever before. When this is increasing, it is historically very bullish.’ This longer term indicator may suggest that a breakout leans towards the bulls.
“Interestingly, bitcoin’s tightening volatility is not a new phenomenon, and occurred from late-September to early-November 2018, which ultimately broke out to the downside, falling from $6,500 to $3,400. One quantitative risk indicator value has been dropping quickly coupled with compressing price volatility. The only other time this dynamic unfolded was November 2018, which could suggest that a stark price fall is on the horizon. The caveat is that this signal has only occurred once before, thus suffers from a small sample size…”