As Stock markets wobbling across the board and endless discussion around stable coins, Bitcoin price has maintained its tight trading range for ten consecutive days.
4h Hour Chart
Bitcoin continues to frustrate traders used to thriving on the volatility typically offered by the asset. Bitcoin prices have has oscillated between $6350 and $6500 with the last week having only a $30 (0.5%) spread between open and closes, which has all ironically happened amidst numerous so-called stablecoins coming to market.
A break of this range to the downside would return BTC to $6200 and a break to the upside would see bitcoin retest $6600.
Bitcoin Price: Volatile Lows
October has marked a new low in Bitcoin’s 2018 volatility as measured by the bitcoin volatility index, despite Stock markets around the world continue to show signs of a wobble.
In recent times, Bitcoin has suffered along with a slump in tech stocks and speculative assets but has remained resilient above $6k and $100bn market cap.
While the traditional markets around the world are making an attempt at a bounce, it is hard to ignore Bitcoin failing to react negatively. Bitcoin showed a remarkable correlation to the S&P 500 through to May 2018, with an 8% sell-off in stocks correlating with a 40% decline in Bitcoin’s valuation.
While Bitcoin would inevitably suffer in the short term if there is a longer-term correction in the stock market, the price divergence with the weaker wider market is a sign of strength for the number one cryptocurrency asset.
With the market continuing to move sideways amongst good and bad news, traders, investors, enthusiasts and skeptics alike continue to await a signal as to where Bitcoin price will head in the short term.
Is the volatility incoming? Does Bitcoin’s next big move depend upon the wider market sentiment? Let us know your thoughts below!
[Disclaimer: The views expressed in this article are the personal opinion of the author and do not reflect the views of Bitcoinist. The information in the article should not be taken as financial advice.]