Bitcoin Price Volatility and Consolidation Patterns
Bitcoin exhibits a tendency to display notable price swings subsequent to periods of consolidation. It is observable from past records that BTC tends to experience a quarterly close pivot following each consolidation phase.
Reviewing a chart illustrating Bitcoin's quarterly price actions since 2010, it is evident that significant price fluctuations typically ensue consolidation periods. Following a stretch of stability, Bitcoin witnessed a remarkable surge in valuation at the inception of 2013, escalating from approximately $16 to $739 in a few quarters.
Both 2015 and 2017 witnessed a resembling consolidation pattern hovering around $230, succeeded by a spike to nearly $20,000 by the conclusion of 2017. Preceding the climb to over $60,000 in early 2021, Bitcoin demonstrated recent stability around the $10,000 level in late 2020. Presently, with Bitcoin trading at $58,000 post another consolidation phase, historical patterns intimate the likelihood of another spike.
Encompassing the recent months, the subsequent chart provides a detailed scrutiny of Bitcoin's daily price fluctuations, showcasing exponential moving averages (EMAs) 50, 100, and 200. Recent price actions show that Bitcoin discovered support at the 200 EMA, indicating the potential formation of a price floor.
Given the current trading position of Bitcoin above the 100 EMA, the recent bounce from this level indicates an optimistic perspective. The daily graph also reveals a decline in volume during the downtrend and an upsurge as prices commenced their ascent. This volume pattern frequently detects the commencement of a novel uptrend and the conclusion of a bearish phase. Viewing the historical quarterly shifts alongside the ongoing daily trends unveiled in the charts, it proposes that Bitcoin might be prepared for another substantial price upheaval.
