BITCOIN AT $10,000, VOLATILITY AT 4-MONTH LOW: CALM BEFORE THE STORM?

Bitcoin marked a slight decrease of less than 2% in the past 24 hours, but its price remains above $10,000 for now. Things are looking relatively calm, as 30-day volatility has dropped to a low not seen since May. Yet if history is any indicator, it’s times like these that portend a violent move.

Bitcoin Trading Between $10,000 and $11,000

For the past eight days, Bitcoin has been trading between $10,000 and $11,000, while its dominance rate has hovered around 70%.

However, the past 30 days have seen relatively low levels of volatility. In fact, it has not been this low since May.

As Tech Tic Technologies reported back in June, Bitcoin’s volatility, especially when raging, is a double-edged sword. Some believe it to be a good thing because it shakes out ‘weak hands’ and guarantees that BTC goes to the strongest holders. It’s also a function of the cryptocurrency’s scarcity because as the supply is static, the price can be volatile.

On the other hand, it also contains quite a bit of downside. It’s commonly associated with price and market manipulation. This is among the reasons why the US Securities and Exchange Commission (SEC) hasn’t yet approved a Bitcoin ETF.

Bitcoin’s volatility also makes trading a lot riskier. Expert traders typically see this as an advantage because they can capitalize on sudden price moves, but those who are less advanced can experience serious losses due to the frequent swings.

Calm Before the Storm?

Bitcoin’s fundamentals are looking stronger than ever. Its hash rate is increasing rapidly which could be tied to increased network security. At the same time, we are anticipating the launch of Bakkt on September 23, which has been one of the most awaited events within the crypto community. Bitcoin’s halving is less than 250 days away. That will decrease the supply of freshly-minted bitcoins, which should, in theory, drive its price higher, as it has always done.

In other words, the current range-bound trading pattern may not be accurately reflecting these underlying factors, among many others.

Back in May, when volatility levels were as low as they are now, the price marched forward and almost doubled in June. Of course, should any violent price swing occur, it could be in the opposite direction.

Comments

Legendary Rock Star Gene Simmons Buys Cardano (ADA) Worth $300,000

Famous rock star Gene Simmons continues his cryptocurrency adventure, this time investing $300,000 in Cardano (ADA). Gene Simmons, the legendary KISS bassist, has made another dip into cryptocurrencies. The famous musician has expressed his belief in Cardano, presuming 2021 would be “the most productive year” for the altcoin. Believing in the Future of Cardano Rock star Gene Klein, aka Gene Simmons, has appeared in online social media with yet another pro-cryptocurrency commentary. This time KISS’s legendary bass guitarist has expressed his opinion on Cardano and its native digital coin ADA. In his recent publication on Twitter, Simmons explained one of his fundamental personal reasons for investing and holding the altcoin. The musician pointed out that he believes in Cardano because of Hoskinson (Charles) – Cardano’s creator and co-founder of Ethereum. In his tweet, the musician expressed his trust in the altcoin hopping on Hoskinson’s envision that 2021 would b...

Bitcoin Hash Rate Hits All-Time High: Here’s How It Works And How It Affects The Price

Bitcoin intelligence, data, and analytics firm Glassnode found the Bitcoin hash rate hit a new all-time high over the weekend, ten days before the Bitcoin halving event. In other words, miners are putting more computational power into maintaining the Bitcoin network. Because miners must venture electricity and capital intensive computer processors to mine Bitcoin, the increase in hash rate is a bullish sign. It means miners are after the Bitcoin rewards they get from maintaining the network. And they’re venturing the resources to go after those rewards. Is The Bitcoin Hash Rate Correlated With The Price? In general, the Bitcoin price and the hash rate are not correlated. The price is what buyers and sellers agree to pay for one Bitcoin, and there are many factors – external and internal – affecting the price. However, there is a relation between the two. While the price goes up, it’s more profitable to mine, which likely to cause more miners to turn on their mining equ...

CHINA 2016 BITCOIN BOOM COMEBACK? YUAN HITS 11-YEAR LOW AGAINST THE DOLLAR

Bitcoin’s price has marked a spectacular increase of around 10 percent over the past couple of days in a move that was nothing if not sudden. Comparing Bitcoin’s situation now to that of 2016, analysts and industry experts think that the instability of China’s yuan relative to the dollar could soon shift the country’s position with regard to crypto. China’s Bitcoin Fever in 2016-2017 Many are comparing Bitcoin’s parabolic price movement of 2019 to that of 2016 and 2017, when the cryptocurrency reached its all-time high price of around $20,000. Now that Bitcoin is up more than 270 percent since the beginning of 2019, it seems only reasonable to make the comparison. However, many industry experts and analysts, including Alex Saunders, CEO and Founder of Blockchain Education, tweeted that one of the key differences between then and now was China’s position. Notably, back before China issued a blanket ban on all crypto trading and exchange operations, the country wa...

Tech Tic Technologies

Search This Blog