Bitcoin is in a consolidating position in the latest stage with speculation rife that due to the decreasing price volatility, Bitcoin price Bollinger is at its lowest point ever. The report, the latest, was submitted by Bloomberg analyst Mike McGlone.
Range between $6,500 to $13,000 critical
McGlone has opined that Bitcoin is at a prime stage to break the upper resistance of $13,000. But he has also said that it would be crucial that the price does not fall below $6,500. Thus, the price range in between falls under a critical range.
“Our graphic shows the upward sloping 260-day moving average on the crypto and bands that roughly marked the 2019 high and 2020 low for guidance. By this measure, when Bitcoin exits its cage, about $13,000 is a good initial resistance target. Sustaining below the bottom band at about $6,500 would jeopardize the uptrend.”
Bitcoin’s volatility relative to the same metric for gold
The assessment made by McGlone further indicates that Bitcoin’s volatility relative to the same metric for gold. It also suggests that the price metric is way low since the record bull run of 2017 and is way below the average value
“Its 260-day volatility, at about 4.4x that of the same gold measure, is the lowest since April 2017. The average is around 6.4x and the peak was 12.2x in 2011.”
Earlier, Bloomberg predicted that Bitcoin may regain the record highs of $20,000. It might even soar to a new high of $28,000.