U.Today: BTC has a history of extremely volatile movements after entering a consolidation period. History shows that BTC had a quarterly closing pivot after each consolidation phase.
According to the chart showing the quarterly price movement of Bitcoin since 2010, it is clear that significant price fluctuations usually occur after periods of consolidation. After relative stability, Bitcoin experienced a massive surge in value in early 2013, going from about $16 to $739 in a matter of quarters.
A similar pattern of consolidation around $230 occurred in 2015 and 2017, followed by a spike to almost $20,000 in late 2017. Before skyrocketing to over $60,000 in early 2021, Bitcoin most recently stabilized around the $10,000 mark in late 2020. As we note that Bitcoin is currently trading at $58,000, following another consolidation phase, past patterns point to the possibility of another spike.
The second chart, which focuses on the past few months, offers a more detailed look at the daily fluctuations in the Bitcoin price. The 50, 100, and 200 exponential moving averages (EMA) are shown on this chart. Recently, the Bitcoin price found support at the 200 EMA, suggesting that it could be forming a bottom.
Since Bitcoin is now trading above the 100-day EMA, the recent rally from this level suggests a bullish outlook. The daily chart also shows that volume decreased during the downtrend and increased as the price started to rise. This volume pattern frequently shows the beginning of a new uptrend and the conclusion of a bearish phase. Based on the previous quarterly fluctuations of the two charts and the current daily activity, it seems that Bitcoin is ready for another big move.
This article was originally published on U.Today
