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Breaking News: Bitcoin May Be In A Price Slump—But Adoption Is In A Bull Market
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Breaking News: Bitcoin May Be In A Price Slump—But Adoption Is In A Bull Market

Early Signs Of Life: Why Bitcoin Is Likely To Move Away From $30,000 Soon

Reynaldo Marquez
Reynaldo Marquez
Last Updated: June 11, 2024 8:14 am
2 mins read
Bitcoin Price BTC BTCUSDT

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The Bitcoin price action has been stuck in a tight range for weeks leading to the lowest volatility levels in years. A recent report hints at a potential breakout from the current range, but which side will be favorable by the potential spike in volatility?

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As of this writing, Bitcoin trades at $28,950 with sideways movement in the last 24 hours. Over the previous seven days, the BTC’s price saw a slight downtick recording a 2% loss. Other tokens in the top 10 by market cap are underperforming, with many seeing double-digit losses on low timeframes.

Bitcoin price BTC BTCUSDT
BTC’s price is moving sideways on the daily chart. Source: BTCUSDT Tradingview

The Last Time The Bitcoin Price Saw Low Volatility

As seen in the chart below, provided by trading desk QCP Capital in a report, annualized volatility for BTC reached critical levels seen for the first time in over five years. The metric last stood at these levels from late 2018 to 2019.

Bitcoin price BTC BTCUSDT Chart 2
Source: QCP Capital

The chart above also shows that volatility fluctuated from the low to the yearly high in a cycle that extended for 2019. At that time, Bitcoin and the crypto market were coming out from a prolonged bear market that, as today, left traders and market participants in shambles and with almost no appetite for risk.

QCP Capital noted that from 2018 to 2019, the macroeconomic landscape dominated the Bitcoin price action. At that time, the US Federal Reserve (Fed) hiked interest rates, but the COVID-19 pandemic, which operated as a catalyzer, forced it to reverse.

The latter occurred from late 2019 to 2020, when the ease in macroeconomic conditions allowed Bitcoin to soar to a new all-time high. Thus, the trading desk believes that a catalyzer is needed to push the price action back to life:

The last time trading was this compressed, it was during the crypto winter of 2018 and 2019, and it took a change in the macro environment to revive the market again.

However, they noted that the break of the current low volatility environment is not “imminent.” However, the upcoming decision on a Bitcoin spot Exchange Traded Fund (ETF) in the US could operate as a catalyzer, bringing BTC to its next resistance level at around $34,000, but patience is still required.

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Bitcoin & Top Assets See High Loss Taking, Is This Bullish?

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QCP Capital concluded:

Will there be a sharp rally that takes us to the 34k resistance – like the prior three times which kissed the support trendline this year? We think it could still be another quiet few weeks before we find out.

Cover image from Unsplash, chart from Tradingview

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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