Bitcoin (BTC) saw a further drop in volatility towards Aug. 12 as the “amazing” BTC price performance continued.
Bitcoin: Expected to be a ‘classic weekend chop’
Cointelegraph Markets Pro and TradingView Since the weekend began, the Bitcoin trading environment has been flat.
Despite a muted reaction to this week’s US macroeconomic data, BTC/USD held firm near $29,500, a key battleground between bulls and bears.
Popular trader Daan Crypto Trades said, “We expect another typical weekend rally around the CME close.” I have written Part of his latest analysis refers to the closing price of the CME Bitcoin futures market at $29,465.
Meanwhile, the lack of activity throughout the week surprised longtime market participants, including Michael van de Poppe, founder and CEO of trading firm Eight.
“A very surprising PA on Bitcoin these days,” he says. summarized On that day.
“I still think there is some upside momentum, and I think we’ve hit the bottom, and we haven’t had that much of a correction. Throw in $29.7,000 = it’s time to party.”
Maartunn, contributor to on-chain analytics platform CryptoQuant, surveyed exchanges and noted long positions emerging from Bitcoin whales.
— Maartun (@JA_Maartun) August 12, 2023
However, when it comes to monitoring resource material indicators, Binance’s BTC/USD orderbook indicated a likely continuation of the status quo within the range.
“As the weekly closing and opening prices get closer, volatility could start to seep in. I’m still in the mood to buy the dip and sell the ripple situation,” part of an accompanying comment. said.
BTC Price Approaching “Historic Compression”
Analyzing Bitcoin’s lack of volatility, the trading community reasoned that a similarly strong trend return should occur.
RELATED: Bitcoin Price Could Be ‘Fully Bullish’ Next Month If 200-Week Trendline Holds
“Bitcoin is approaching the historic 3W compression level of over 20MA. Ticking,” says popular trader TechDev predictedreferring to a 20-period moving average on a 3-week timeframe.
The attached chart shows BTC price movements following similar episodes in the past, which are just four times in total since Bitcoin’s creation.
“Historical compression leads to historic expansion…Imagine looking at this chart and thinking, ‘Yeah, 10,000 is coming in,'” said fellow trader Credible Crypto. answered.
“It’s a time bomb until the bears go extinct.”
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This article does not contain investment advice or recommendations. Any investment or trading move involves risk and readers should conduct their own research before making any decision.