Bitcoin price is well above $50,000, but there’s no denying that some of the momentum that the asset had to start the year has been lost. Volatility lowering also could suggest that the “hype run” might have “passed” for the time being.
But rather than see a sizable correction, Bitcoin price action could instead trade sideways a lot longer, which would be “healthy” before making a push to new record highs.
Disappearing Volatility Could Indicate Bitcoin Hype Has Died Down
The leading cryptocurrency by market cap has taken center stage in the world of finance during the ongoing pandemic. Unprecedented money printing to fund stimulus packages have made hyperinflation a reality, but turned the world’s attention to Bitcoin.
Related Reading | Bitcoin Shakes Off Dollar Rebound But Beware Of Coming Bear Phase
As the money supply expands exponentially, the cryptocurrency’s supply remains capped at only 21 million BTC. It has caused the price per Coin
‘ href=”https://www.newsbtc.com/dictionary/coin/”>coinseemed overvalued, which was right around when the BTC market cap surpassed $1 trillion for the first time.
Related Reading | Fund Manager Bashes Bitcoin: An Extreme Form of Libertarian Anarchism
The dollar is also beginning to awaken, and the stock market is showing signs of weakness that could put crypto at downside risk. But the report says that downside isn’t necessarily imminent. Instead, Arcane Research revisits 2017, before the final push to the bull market peak began.
Bitcoin could see a lot more sideways in the near future | Source: BTCUSD on TradingView.com
The chart above shows that there were at least three phases of sideways action before a move up occurred. Thus far, Bitcoin has only completed one of these phases, and is mid-way through another wave of consolidation.
If history repeats, the current sideways price action could go on a lot longer, and another similar trading range could be ahead before the final parabolic push.
Featured image from Deposit Photos, Charts from TradingView.com