It’s hard not to notice how tightly bitcoin has been trading the last couple of weeks. Volatility has hit the lowest in four months the last 24 hours. According to Blockforce capital, an asset managing platform, it’s the first time since May 10 that the volatility readings are at 47%.
Blockforce capital also showed declining 60-day volatility with a reading of 54%, also a new low since May 10.
Bitcoin Is Slumping
The world’s most prominent digital asset is fluctuating between $10,000 and $11,000 as CoinDesk data reveals. And several crypto analysts have weighed in on the situation, most of them emphasizing on a lackluster sentiment.
Erick Finman, a crypto entrepreneur who attained the millionaire status at a young age by investing in a nascent bitcoin asserts that the hype around bitcoin has died down. He admits that the digital asset is indeed in a slump.
The same sentiments were shared by Tim Enneking, Managing Director At Digital Capital Management. He emphasizes that indeed the volatility recordings are the lowest in a long time. Enneking asserts that BTC could be consolidating.
It’s interesting to also note that bitcoin was recently consolidating in the upper half of the narrow pennant that it was struck in before the peak in early June. It’s the first time it’s happening in over 3 months
But at the same time, it’s safe to say that we’ve had a relatively stable year for cryptocurrencies. Especially considering the manner in which the prices moved from ridiculous highs at the end of 2017 to the nose-diving prices that 2018 registered.
Wait And See
BitBull Capital CEO Joe DiPasquale has also weighed in on bitcoin. He stated that bitcoin is still in a consolidation mode as witnessed in the tight spreads experienced in the weekend’s range between $10,435 and $10,175. He, however, sees the digital currency breaking free from the current range despite the tepid market movement.
DiPasquale also acknowledges that investors are still in a wait and see. There are expectations however that there will be a change of events and volatility will increase once more. Perhaps the upcoming Bakkt launch later in the month will trigger volatility on a positive note.
Factors Likely To Cause Heightened Volatility
Other analysts pointed out different factors as likely to cause heightened volatility. The true blue mainstream technology using bitcoin could be the crypto’s savior, says Finman.
Enneking’s opinion is different, the most likely short term factor that might cause an upside breakout is increasing macroeconomic and geopolitical concerns. For instance the most recent attack on Saudi oil fields.
A US ETF approval could also cause a tremendous impetus. A positive SEC decision is however unlikely as we head towards the deadlines next month.
On a longer-term, the upcoming halving could be quite positive and the period running up to that.