Cryptocurrency market observers expecting more fourth-quarter action out of bitcoin are probably disappointed as the largest digital currency by market values remains mired in a tight trading range.
Bitcoin’s all-time high of around $20,000 was seen in December 2017 and the digital currency has not even been close to flirting with those levels this year. Some market observers believe a return to $10,000 anytime soon will be challenging. Still, there are some important technical levels for bitcoin traders to acknowledge over the near- to medium-term.
“Daily volatility, as represented by the spread between the price high and low, fell below $100 on Oct. 19 and has remained under that psychological mark to date, according to data from CoinDesk’s Bitcoin Price Index (BPI). That’s the longest volatility has been so low since April 2017,” reports CoinDesk.
Chart courtesy CoinDesk
Momentum plays an important role in when to buy bitcoin, but what may be surprising is that buying the cryptocurrency after it has experienced big rallies can be a winning strategy. Some crypto market observers believe the long-term outlook remains encouraging for the largest digital currency.
What’s Next for Crypto?
Traders expect bitcoin, the largest digital currency by market value, to remain range-bound over the near-term. Among the myriad issues facing bitcoin and other cryptocurrencies is adoption. As in when cryptos will become more widely accepted and used for mainstream activities, such as basic payments and money transfers, on a larger scale.
“As of now, BTC is averaging around $6,500 and the average daily volatility has dropped to $56 in the last seven days, meaning prices are moving just 0.86 percent on a daily basis. So, it seems safe to say that we are witnessing an unprecedented period of low volatility,” according to CoinDesk.
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Charts suggest bitcoin has plenty of work to do to earnestly snap out of its recent slumber.
“A break above the September high of $7,400 would put an end to the series of lower price highs (marked by circles). The bull breakout, if confirmed, would open the doors to a stronger rally to $10,000. On the way higher, BTC may encounter resistance at the July highs near $8,500,” according to CoinDesk.
For more information on the cryptocurrency market, visit the Bitcoin category.