Bloomberg: Bitcoin consolidation ends with a breakthrough

Bitcoin volatility has been particularly low in recent weeks.

Several indikatora based around this index has reached many monthly bottoms, such as Bitcoin continues to trade in the range of $ 8,500 – $ 10,000.

On July 3, a trader shared a chart showing Bitcoin’s historical volatility index. The graph shows that the index is at its lowest value since the end of March 2019.

The size of the Bollinger Bands, which also measure volatility, are at many monthly lows. The indicator is often used to signal important levels of volatility.

The volume of the Bitcoin market has dropped significantly.

“The volume trend is coming to an end. All out-of-range closures were misleading. Look for a change in behavior – there is a good chance that this signals the right direction. There is an unconfirmed model of head and shoulders, whose non-line coincides with the resistance from the top of all time so far. “

The low volume and lack of volatility suggest that Bitcoin is facing a macro breakthrough.

According to Mike McGlone , a senior commodities analyst at Bloomberg Intelligence, the current consolidation is more likely to break. He shared his views on Bitcoin’s medium-term prospects on Twitter.

“Volatility should continue to decline as Bitcoin continues its transition to the gold equivalent of a highly speculative asset, and we expect this compression to be resolved at higher prices.”