Although crypto assets have increased by 5% over the past few weeks and then decreased by 5% again, the rest of the Bitcoin and crypto market is actually consolidated.
The following chart, shared by a crypto trader, proves this: Bitcoin seems to be trading tightly between the 50-day and 200-day simple moving averages over the past two weeks.
Similarly, Bitcoin implied price volatility has dropped from 142% to 76%, 50% over the past 30 days. Bollinger Bands, also a technical indicator that effectively measures the volatility of an asset, is approaching the lowest levels in recent months.
These three factors show that the crypto market is ready for a bomb, but will this be positive or negative?
Bulls Win the Challenge
As can be seen and many analysts have stated, bulls win the crypto war.
On the other hand, the US Senate approved an additional incentive package of $ 484 billion in addition to the $ 2 trillion incentive package it approved in March. According to analysts, although it is a necessary package to save the economy, it proves the value of a limited and decentralized currency like BTC.
While the hashrate of Bitcoin is increasing towards halfway, more correlations are observed in connection with the market recovery of crypto assets.
While bulls seem more dominant than bears, this does not mean that there are no downfall catalysts that can cause crypto assets to drop rapidly.
Another claim has been made recently that has been shown by the bear and voiced by traders. According to the claim, a rising wedge pattern in the “Graphic Pattern Encyclopedia” is shown, which is a sign for the bear.