Crypto enthusiasts should brace for another blow to their accounts. Bitcoin has been consolidating for months, but appears to be reaching a point of capitulation soon. As we've stated before, when volatility rescinds for an appreciable amount of time, a breakout or breakdown can be expected. Anyone looking at a day chart can see that the volatility in recent prices is abysmally low compared to that of December 2017, or even just a few months ago. We can measure this via the ATR, which is shown below. Note that, just like the price action, there has been a consolidation in the volatility measurement itself, with an unmistakable downward trajectory. A measurement of 60 is effectively a measurement of 0.
There has been some positive news as of late that doesn't seem to have impacted BTC in the slightest. Yale has announced a $400M interest in a crypto related fund. When news like this fails to move the crypto markets, they're likely to move against you.
The momentum we saw prior to this implies that we have a bear flag, and portends a breakdown. If this is the case we can expect BTC to test $5800 again. This does seem to be a hard lower bound for BTC (at least we hope). Short term traders may consider trying to take advantage of this impending collapse, while longer term traders might consider it as a nice dip to buy.
There has been some positive news as of late that doesn't seem to have impacted BTC in the slightest. Yale has announced a $400M interest in a crypto related fund. When news like this fails to move the crypto markets, they're likely to move against you.
The momentum we saw prior to this implies that we have a bear flag, and portends a breakdown. If this is the case we can expect BTC to test $5800 again. This does seem to be a hard lower bound for BTC (at least we hope). Short term traders may consider trying to take advantage of this impending collapse, while longer term traders might consider it as a nice dip to buy.