Bloomberg News reports that Bitcoin, which has been unusually placid, is likely to gird for a pick up in turmoil and at a lower lurch if history is what experts swear by. The largest digital token in the world is well known for its volatility, however, it was found to defy the stereotype by vacillating within a constrained range of about $20,000 in four months since it hit a low in the mid of June.
However, Bollinger bandwidth, a potential indicator, was found to be shrinking to the narrowest since 2020. The bandwidth serves as the gap between the lower and upper bands in a study related to Bollinger, which is one of the popular ways of gauging how volatile the sector is.
There were five other instances when there was a narrowing of the Bollinger bands in the last two years, as per data that Bloomberg compiled. Out of the four such occasions, Bitcoin dropped by about 16% over the past 20 days. Back in October, just once, it had embarked upon a surge to $69,000, which was at a record high.
Some technical analysts believe that the tight Bollinger bandwidth increased Bitcoin swings and acted as a harbinger that led to a potential cost decline.
Bloomberg News reports that monetary tightening that is occurring globally to combat inflation has triggered about a 60% drop in the value of the largest digital token this year. About $2 trillion has already been wiped out from the cryptocurrency sector since it attained a high in November 2021, causing the regulators to step up the oversight.
Base of Tranquility
The global markets are waiting for the data related to inflation that is due Thursday. A hot number might make the expectations stronger for more hikes in the Federal Reserve rates, roiling a wide array of assets while there is a material slowdown.
According to Cici Lu, the chief executive officer of Venn Link Partners Pte, there may not be a bullish run soon, as stated by the CEO. All that is needed is just a lone piece of news that will make the regulations haywire, which could lead to the bottom end of a trading range between $19,000 and $24,000.
As stated by Darius Sit, the co-founder of QCP Capital Pte, the co-founder of the crypto investment fund, it is expected that the price of Bitcoin might be macro-driven in the future. If there happens to be a breakout on either side, it will trigger a surprise in CPI print.
As of 6:12 am Monday, there was little change in Bitcoin at $19,450 in London. The other coins like Cardano, Ether, and Solana have also been struggling for direction.
