In line with a recent report by Bloomberg analyst, Mike McGlone, contends that Bitcoin is consolidating. He predicted that due to the decreasing volatility, Bitcoin price Bollinger Bands are at its lowest point ever.
Critical Range For Bitcoin – $6,500 to $13,000
As per his prediction, Bitcoin is priming to interrupt out of the upper resistance level of $13k. Also, it’s critical that price doesn’t fall below $6,500 USD. Adding further, he said:
“Our graphs reveal 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 analysis, when Bitcoin exits its cage, about $13k would be a good initial resistance target. Sustaining beneath the bottom band at around $6,500 would jeopardize the uptrend.”
Bitcoin Volatility Relative To Gold
McGlone also added that Bitcoin’s volatility relative to some equivalent metric for gold is at lowest bottom since the record bull run of 2017 and is much below the average:
“Its 260-day volatility, at about 4.4x that of an equivalent gold measure, is the lowest since April 2017. The average is around 6.4x and the peak was 12.2x in 2011.”