• Bitcoin has dropped significantly in the past few weeks, but is currently attempting to reclaim its position above $30,000.
• The current market setup suggests that there is a possibility of a bullish breakout beyond the current highs.
• Volatility is expected to increase in the coming week due to the announcement of the FED’s interest rate decision.
Bitcoin Experiences Bearish Fall
Bitcoin has been trading within a defined range for nearly a month with reduced volatility despite having consistent volume since April. This could potentially lead to a bullish breakout beyond the current highs as it may be interpreted as healthy accumulation period. Despite this, Bitcoin volatility is extremely low and when it reaches such low levels, we can expect a big move in the near future.
Significance of FED’s Interest Rate Decision
Volatility is expected to rise sharply this coming week due to the announcement of FED’s interest rate decision. At present, risk appears to have been lowered which may take prices down significantly if support at bottom does not hold up. Therefore, long-term trend remains bullish provided BTC bottoms holds up.
Volatility Chart Flashes Green Signal
The volatility chart flashes green signal whenever volatility drops below certain levels which indicates that markets are preparing for massive bullish movement ahead. Previously whenever this happened, bearish influence was flipped and markets switched from contraction phase into expansion phase leading to price hikes beyond previous highs.
Bull Pennant Formation
In long term view, BTC is forming bull pennant and price has been trading within this pennant awaiting breakout soon enough. Despite low volatility situation continues to remain while volume continues being stagnant since April indicating accumulation period for Bitcoin before next big move happens soon enough!
It looks like Bitcoin might be able to break out from its current bearish fall and move towards some form of stability or even better – an upward surge! However, certain levels must be tested and secured before any kind of bullish momentum can be established so traders should stay alert and prepared for any sudden movements or news announcements related to BTC during this upcoming week!