Potential Bull Run on Horizon as Bitcoin (BTC) Reduces Volatility

Potential Bull Run on Horizon as Bitcoin (BTC) Reduces Volatility

Bitcoin Shows Reduced Volatility during Week End

The erratic nature of Bitcoin (BTC) saw a decrease as the final weekly close of July 30 came into view with some traders spotting a potential bull indicator on the horizon.

Information gathered by Cointelegraph Markets Pro and TradingView showed a relatively stagnant Bitcoin pricing over the weekend. BTC/USD mostly hovered within a minuscule $150 bracket.

Throughout the week, global economic indicators and events seemed to have little effect on the usually tempestuous Bitcoin market, triggering speculation about a potential downturn.

Despite only a few hours remaining towards the weekly close, market volatility seemed to remain extremely low.

According to famed anonymous trader Daan Crypto Trades, the Bitcoin market had not shown such low volatility since early 2023 and such stagnant periods usually precede substantial market movements.

Bitcoin’s Bollinger Bands Predict Strong First Quarter

As previously reported by Cointelegraph, Bitcoin’s Bollinger Bands are closely reflecting the conditions observed at the beginning of this year, just prior to the 70% surge in Bitcoin value during the first quarter.

A look at Binance BTC/USD order book highlighted that whale purchases were mounting and further resistance was developing, especially approaching the $30,000 mark according to Material Indicators, a platform that carefully studies market movements.

On July 29, in their commentary, Material Indicators suggested that these guiding factors should remain in place until the weekly and monthly candle closes approach their ends.

Bitcoin’s Monthly MACD Cross Ahead

Market chatter was brimming about the possibility of a bullish cross emerging on Bitcoin's MACD (moving average convergence/divergence) indicator.

According to several market pundits, such a bullish cross on monthly timelines is inches away from affirmation and if market history is any indication, this could serve as a sign of potentially bigger gains in the future.

Despite the positive outlook predicted by the cross, Stockmoney Lizards, a trading resource, warned that this shouldn't be interpreted as the end of Bitcoin’s summer correction phase.

A historical overview of Bitcoin showed that a similar monthly MACD cross in late 2015 was in fact a precursor to Bitcoin’s surge to $20,000, an all-time high at that time, that took place two years later. Regardless of lower-timeframe MACD crosses that could be misleading, a weekly cross happening in August 2021 forecasted Bitcoin's climb to its current all-time high in November of the same year.

Disclaimer: Information contained in this article is not intended to be investment advice. Every investment and trading decision entails risk and should only be made after conducting proper research.