Gone are the days when the price of Bitcoin nearly touched the $20,000 mark in the middle of December 2017, but possibly gone are the days when it spiraled down to $6,000. According to Bill Baruch, the president of Blue Line Futures, a futures brokerage company, Bitcoin’s fall from grace may be near and a possible run up may be in store for the future.
Baruch cites low volatility as the reason for Bitcoin reaching its floor, saying that, “A bottom is a process not a price. Now that (Bitcoin’s) price and volatility are back down to earth, this bottoming process can begin.” Moreover, the selloff since its high in December 2017 “wiped out most, if not all, of the over-enthusiasm” and that reaching a bottom barrel price would come “more quickly and more constructively” if its current low of $6,000 remains.
According to data from Coinmarketcap.com, the total value of all cryptocurrencies remains just under $290 billion. Bitcoin’s price as of 1:30 pm Eastern Time is $6739.35–1.17% higher in the past 24 hours.
The rolling 30-day annualized volatility for Bitcoin is down 61 percent after reaching a low of 50 percent near the beginning of the month based on an analysis by Pension Partners. Bitcoin’s volatility this month pales in comparison to last year’s mania when volatility reached 150 percent.
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