Bitcoin price has been trading in a close price range since May. Although the leading cryptocurrency has shown some bearish and bullish movements in this two-month period, it has maintained its level. Its compatibility with global markets and US stock markets is thought to be effective in these price changes. However, new data pointed out by experts point out that this stability will deteriorate at any time.
Bitcoin volatility data has reached its lowest level in 2020. According to the latest data released by the analysis platform Skew, volatility values ??for BTC / USD dropped to 30 percent weekly. According to the graphs examined, this means that Bitcoin is one step closer to the breaking point.
Bitcoin may experience a big drop anytime
According to the data obtained, the price of Bitcoin has been in a range of $ 9,000 to $ 10,000 for more than a month. These price movements indicate a gradual contraction for the leading cryptocurrency. The Bollinger Band data, which represents price volatility data, fell to the lowest rate of 0.08 since April 1. Experts consider it a reflection of increased stress in the cryptocurrency market. Increasing risk conditions and global markets may have made investors cautious.
Famous analyst Elixium Crypto is one who thinks that this contraction can lead to a big drop. The analyst, who made statements on the subject from his twitter account, touched the following points;
“The volatility contraction still continues for Bitcoin. This means that the last price increase should be approached with caution. The price could explode negatively at any moment until Bitcoin exceeds the $ 9,800 level again. ”
https://twitter.com/ElixiumCrypto/status/1275759218130399232?s=20
Shrinking Triangle Indicates Break
Bitcoin, which hovers below the Bollinger Band range, seems to be fixed there. This could push the BTC price back to its support position at $ 8,600 and $ 8,000. If it is not able to hold on to these supports, it is thought that the leading cryptocurrency can go down to the level of $ 6,500. Increasing its compatibility with global markets, Bitcoin is likely to draw this negative picture with the effect of increasing risk conditions.
As quoted in the chart, Bitcoin is traded in a symmetrical triangle. Looking at the price, it is noteworthy that the model fluctuates within the upper and lower trend lines. Triangle points out that the decision period of Bitcoin has also decreased. This means that a great movement will begin very soon.
US Stock Exchanges May Influence Trends
The harmony between Bitcoin and the US stock exchanges has increased more than ever before. It is thought that this harmony may be affected by the fear of fear caused by epidemic risks, leading the leading cryptocurrency to enter a downward trend. It will be possible to say that if the trend of BTC prices, which have started to become boring for investors, show the same trend as the US stock markets, a major increase or decrease will be determined by the conditions affecting the global markets. Nevertheless, it is one of the issues that investors are looking forward to seeing recently.
