Bloomberg said that Bitcoin (BTC) stays above a key resistance level, as the Bollinger Bands suggest that Bitcoin is consolidating for a major breakout.
It has been reported by Bloomberg analyst Mike McGlone that Bitcoin is consolidating, as he speculates that due to the decreasing volatility, Bitcoin price Bollinger Bands are at its lowest point ever.
However, in his opinion, Bitcoin is priming to break out of the upper resistance level of $13,000. At the same time, he said that it is critical that the price does not fall below $6,500.
Bloomberg: Bitcoin is set for a major breakout https://t.co/XwfwxxszoK — Cointelegraph (@Cointelegraph) June 26, 2020
“Our graphic shows the upward sloping 260-day moving average on the crypto and bands that roughly marked the 2019 high and 2020 low for guidance. By this measure, when Bitcoin exits its cage, about $13,000 is a good initial resistance target. Sustaining below the bottom band at about $6,500 would jeopardize the uptrend.”
Also, McGlone observed that Bitcoin’s volatility relative to the same metric for gold is at the lowest since the record bull run of 2017 and is way below the average.
Thus, he concluded:
“Its 260-day volatility, at about 4.4x that of the same gold measure, is the lowest since April 2017. The average is around 6.4x and the peak was 12.2x in 2011.”