Bitcoin has made a significant upward move in recent days, capturing the attention of the investing community. This surge has caused a noticeable shift in market sentiment.
However, according to Coinglass, Bitcoin’s volatility is still considerably low compared to previous cycles. This relatively stable climate has led to speculation about whether BTC is on the verge of reaching a new all-time high in 2024.
Historically, Bitcoin’s most significant rallies have been marked by high volatility. Nevertheless, current data suggests that the market might be waiting for a catalyst to initiate more significant price movements. Analysts are observing this pattern closely, positing that the ongoing low volatility could indicate a consolidation phase ahead of a major breakout.
With Bitcoin steadily breaking through key resistance levels, there’s growing curiosity among traders about whether this low-volatility pattern will persist—or if a forthcoming event could trigger BTC to new heights.
Bitcoin’s Recent Price Surge Amid Low Volatility
Bitcoin has been on an upward trajectory since Tuesday, boosted by the Federal Reserve’s announcement of a 50 bps interest rate cut.
This development has revived optimism in the cryptocurrency market. Investors and analysts view this as a potential turning point, suggesting that a broader uptrend could be on the horizon. The Federal Reserve’s decision to cut interest rates is a significant factor in this price movement; lower interest rates often drive investors toward riskier assets like BTC, thus increasing demand.
Notable crypto analyst Daan has highlighted key data from Coinglass, pointing out that while Bitcoin’s volatility is high for this cycle, it hasn’t yet reached the extreme levels common in previous cycles.
Daan believes that a breakout from the current consolidation range, which has been the norm for most of 2024, could significantly boost volatility and spur stronger price action.
The Federal Reserve’s rate cut could serve as the catalyst for this next wave of activity. If BTC can sustain its momentum and break through critical resistance levels, the market might see a rapid acceleration, potentially leading to new all-time highs as volatility increases.
BTC Eyes Key Liquidity Levels
Currently, Bitcoin is trading at $62,995 after encountering resistance from the daily 200 moving average (MA) at $63,977. This indicator, which signals long-term strength for BTC, must be reclaimed as support to trigger a substantial price increase.
For the bullish trend to continue, Bitcoin needs to maintain its position above the critical $60,000 level and eventually reclaim the daily 200 MA. Successfully surpassing this resistance and establishing it as support could push the price toward local highs around $65,000, followed by a potential retest of the $69,000 all-time high set during the 2021 cycle.
Conversely, failure to hold the $60,000 support level might result in a more considerable correction, driving the price to lower demand levels. Investors are closely monitoring these pivotal levels to gauge Bitcoin’s next move, knowing that holding above $60,000 is crucial for sustaining the bullish momentum.
Featured image from Dall-E, chart from TradingView
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