Bitcoin’s Low Volatility May Be the Calm Before a Rally This Month
JH Kim
Summary
- On-chain analyst Sykodelic said Bitcoin’s low volatility is not a bearish sign, but part of the setup for its next uptrend.
- He said energy for the next major move has been building over the past 60 days, and that the market’s quiet action should not be interpreted as a loss of Bitcoin’s momentum.
- He said that even if an inverse head-and-shoulders pattern is completed or Bitcoin pulls back to the $60,500 support level, the long-term trend would see little impact. He added that the next major move is likely to be upward and could begin this month.
Forecast Trend Report by Period
On-chain analyst Sykodelic said on Aug. 4 that Bitcoin’s subdued volatility is not a bearish signal, but part of a setup for its next uptrend.
The market is in a base-building phase, with energy for the next major move accumulating over the past 60 days, he said. Low volatility should not be interpreted as a sign that Bitcoin has lost momentum.
Sykodelic added that the longer-term trend would remain largely intact even if an inverse head-and-shoulders pattern is completed or Bitcoin briefly pulls back to the $60,500 support level. He said the next major move will likely be higher and could begin this month.
JH Kim
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