On-chain analysis by Santiment predicts that Bitcoin price will soon see some volatility
Bitcoin price has witnessed some low volatility since the flash crash of $ 1,500 over five minutes. Over the past three days, Bitcoin has ranged from $ 11,100 to $ 11,500 for the most part. Based on analysis from Santiment, the cryptocurrency market with Bitcoin will soon see some volatility but in a positive direction.
Santiment: Bitcoin price may soon grow strongly
According to blockchain analysis firm Santiment, Bitcoin just saw a massive spike in its “token age purchased” metric. This means that the first is a lot of BTC just moved, or the second is a decent chunk of “old” coins, meaning coins that have not been transacted in a while have proceeded.
Santiment stated:
“This is a sign that the BTC market will soon undergo a bout of volatility, potentially in the upward direction.”
1) $BTC has just indicated that the 3rd largest token age consumed spike since April has taken place today, indicating a potential short/mid-term price direction change and increased volatility. The last large spike, occurring on July 27th, was indicative pic.twitter.com/9k0cIyeBOM
— Santiment (@santimentfeed) August 4, 2020
Most analysts agree that the Bitcoin bulls are still in control, despite the drop last weekend. This shows that if volatility comes, Bitcoin is more likely to rise higher than the lower.
Cryptocurrency trader HornHairs emphasized, as long as Bitcoin is holding above $ 10,500, it will automatically tend to rise. This is related to the importance of that price level to BTC, which has been considered a resistance level for three separate rallies in the past 12 months:
“$10.5k 1W S/R level. Zooming in (2nd chart) & seeing price interact with it after sweeping & closing above the LTF swing low with an inefficient move waiting to be filled above gives me a bullish bias this week.”
Analyst B.biddles noted, BTC’s weekly chart shape looks identical to BTC’s monthly chart shape at 2018 lows.
He stated:
“Can’t believe I didn’t see it before. On the Weekly, classic pattern I call the “Smooth Transfer of Power” A. Bears get expanded as price descends B. Bulls silently buying all along take control C. Re-test of power D. Lift off Compare to the Monthly one, Crypto Winter FIPS -’19.”
If history repeats itself, Bitcoin seems to be on the verge of a multi-week and potentially months-long operation.
You can see the Bitcoin price here.
Read more:
- Bitcoin Is At A “Do Or Die” Level But Silver And Gold Will Guide Bitcoin Higher
- Bitcoin Price Is On The Verge Of A Multi-Month Rally That May Bring It To A New ATH