Bitcoin price surged by $ 54,000 but bearish volatility suggests that the bull run may be over for the time being
Bitcoin price is rising higher than $ 50,000 but there is no denying that some of the momentum the asset gained at the beginning of the year was lost. The decrease in volatility may also indicate that the bull run may be over for the time being. But rather than witnessing a major correction, Bitcoin price action could instead trade sideways for longer, which should be healthy before making a push to new record highs.
BTC/USD 4-hour chart | Source: TradingView
The volatility disappearing could indicate Bitcoin price hype has subsided
According to statistics from CoinMarketCap, the volume of Bitcoin transactions in the past 24 hours was $ 51.3 billion, the capitalization was recorded at $ 1,019 billion.
Many professional investors believe that BTC is recovering and growing strongly thanks to the economic stimulus package overcoming the $ 1,900 billion COVID-19 epidemics of US President Joe Biden has just been approved by the Senate. The accelerated progress of the COVID-19 vaccination, making the US economic outlook much brighter than predicted, also had a positive impact on the cryptocurrency market.
Along with that, major financial institutions are still interested in Bitcoin and the crypto market. JPMorgan Bank recently announced it is recruiting 34 people to work in the blockchain sector in many countries such as the US, India, and Singapore. Similarly, German private bank Donner & Reuschel announced it will offer cryptocurrency buying and custody services to its customers.
Bitcoin soared with many other Altcoins. Ethereum up 4.79%, Binance Coin up 25.5%, Cardano up 7.4%, Polkadot up 11.7%, Ripple up 2.2%, Litecoin up 7.8%, Bitcoin Cash up 4.6% . The total market cap is currently recorded at $ 1,700 billion, up 5.8%.
Bitcoin has taken a central place in the world of finance during its ongoing pandemic. Unprecedented money printing to fund stimulus packages made hyperinflation a reality but turned the world’s attention to Bitcoin.
As the money supply expands exponentially, the crypto supply remains capped at just 21 million BTC. The uptrend has aroused interest in cryptocurrencies as a whole, however, the bull run could be nearing an end, according to the volatility.
Bitcoin volatility is disappearing as time goes on | Source: Arcane Research
The latest market report from Arcane Research calls attention to the fact that the volatility of Bitcoin – a feature where the asset is well known – peaked in February alongside local highs.
Since then, the volatility has begun to weaken, which the report claims could suggest that the peak of the hype is over. The peak crypto craze seems to have gone to hell after Elon Musk said the top coin appeared to be overvalued, just by the time the BTC market cap surpassed $ 1 trillion.
The dollar is also starting to wake up, and the stock market is showing signs of weakness which could put the cryptocurrency at risk of a price drop. But the report said that the downside is not necessarily imminent.
Instead, Arcane Research reconsidered 2017, before the final push to the top of the bull market began.
Bitcoin could go even more sideways soon | Source: TradingView
The chart above shows that there were at least three phases of sideways action before a bull run occurred. So far, Bitcoin has only completed one of these phases and is in the midst of another wave of consolidation.
If history does repeat, current sideways price action could take much longer and another similar trading range could be ahead before pushing the final parabol.
You can see the BTC price here.
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