The king of cryptocurrencies, bitcoin (BTC) has extended its consolidation phase at around the $9,200 region, following a critical rejection at $9.5K earlier this week. Both the bulls and the bears seem to have reached a deadlock, with neither party managing a strong move in either direction.
The cryptocurrency is also nearing the lowest levels of volatility which means that major price action is on the horizon. According to crypto analyst and the co-founder of Blockroots, Josh Rager, investors should brace themselves for what is coming in the next few weeks.
The Last Time BTC’s Historical Volatility Was This Low, A 30%-60% Price Move Followed: Josh Rager
At press time, bitcoin is trading at $9,227.58. This is the average price at which it has been trading over the past couple of weeks. This has come as a result of the decreased volatility in the bitcoin market.
In a tweet on July 12, Rager noted that bitcoin’s historical volatility (HV) is now nearing 40. Historically, bitcoin volatility being this low has always been followed by a mammoth price move of between 30% and 60% in the weeks ahead, he further stated attaching a chart to support his analysis.
From the current price levels, an explosive 30% upside move would put BTC at approximately $12,000. Similarly, a 30% downward move would send the coin to $6,500. Either way, he advises bitcoin investors to put their seatbelts on in readiness for the next major move.