“If Bitcoin Follows This Pattern, Its Price May Rise”
According to IntoTheBlock, a blockchain analysis company, Bitcoin’s volatility is falling to levels that previously preceded significant price increases. In their new analysis, IntoTheBlock analysts reported that when volatility remained stable at the current level over a five-week period, the price of the number one coin saw an average increase of about 46 percent.
The analysis reveals that Bitcoin could approach $40,000 if it follows this historical pattern. However, the company also pointed out that there are three instances where the same signal precedes a 50 percent drop. The following statements were included in the post on his Twitter account;
BTC volatility has historically reached significant lows. Annual 60-day volatility fell below 40 percent for the eighth time in the last five years. Typically, BTC volume stays below this threshold for five weeks, which then leads to a 46 percent price increase. In addition, three instances of a 50 percent decline have occurred under similar conditions.
According to analysis by IntoTheBlock, the 64 percent majority of individuals who own Bitcoin are currently in a profitable position, surpassing the breakeven price. In contrast, around 33 percent currently own Bitcoin at a lower value than their initial investment. The 69 percent majority have held Bitcoin assets for over a year.
Analysts are also watching the peer-to-peer payments network Litecoin (LTC), which will be halving in about 76 days. This event means that miner rewards are reduced by half. Litcoin has received significant attention on various social media platforms lately, indicating a positive market sentiment towards the cryptocurrency.
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