With Bitcoin (BTC) prices be particularly volatile of late, a well respected analyst told an industry publication the industry is taxing trader's patience.
In a Cointelegraph news story, Aksel Bibar, a chartered market technician and founder of Tech Charts, said the market is both bullish and bearish.
"Seems like $BTCUSD is exhausting many trader’s patience," Bibar said in the Cointelegraph story.
Bibar advised staying the course, even with recent BTC drops compared to January's 40% gains, Coiontelegraph reported.
"That is usually the condition you see before strong moves," Bibar said to Countelegraph. "Not sure about the direction though. I will stick with my well-defined boundaries. I know that increased volatility is around the corner. Capture the directional move."
Cointelegraph's story reported on-chain data suggests BTC is set for a burst of volatility compared to January's gains. The tightest Bollinger Bands since the start of this year indicate a potential shift in trend for BTC, with its price range remaining compact and its upper and lower bands unusually close together, making it the quietest BTC market since early January.
BTC tickers recently were down $29,855 and experts say to prepare for a spike volatility that could match January, Cointelegraph said. The price of BTC has been fluctuating within a small range of $30,000 throughout this month. Bollinger Bands behavior indicates that the move should occur sooner rather than later. The traditional volatility indicator is currently issuing a warning sign that the days of BTC price activity in a range are coming to an end.
When a price of an item is about to change trend, Bollinger Bands employ the standard deviation around a simple moving average to make this determination. The top and lower bands on BTCUSD are currently unusually compressed – more so than at any other point since Bitcoin started 2023 upward. With a range of only 4.2%, Cointelegraph noted this was the "quietest BTC market since the lull in early January."
At that time, Bitcoin saw a breakout that persisted for the remainder of the month, pushing January gains to almost 40%, according to Cointelegraph.
Despite the BTC price increases since January, this lack of realized activity has historically been a regular occurrence in the years following price cycle lows. For now, gains plus losses total about $290 million each day. While nominally large, Glassnode told Cointelegraph, "this amount is comparable to the 2019 peak and to October 2020, when BTC prices were 50% lower than they are today."
