While Bitcoin has seen strong volatility on a day-to-day and week-to-week basis, it is flat on a macro scale. The crypto-asset has basically traded in the same $3,000 range for five months now. This has allowed macro volatility indicators to subside to critical historical points.
Volatility analysis by one fund manager in the space suggests that when a breakout happens, it will be explosive. He thinks it will be so explosive, in fact, that Bitcoin could hit $20,000 in three months if it attempted to break higher now.
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Next Bitcoin Breakout Likely to Be Explosive
Bitcoin’s next macro breakout is likely to be explosive, according to an analysis by crypto fund manager Mohit Sorout. Sorout is a founding partner of Bitazu Capital.
He recently shared this chart below, which shows that on a macro basis, Bitcoin’s volatility is extremely low. In fact, it’s reaching lows seen rarely in BTC’s history, with these levels only occurring approximately once a year.
This is neither bearish nor bullish in its own right.
However, if Bitcoin breaks higher, historical trends indicate that the responding move should be one that is explosive. Each rally and crash after volatility was this low historically was explosive: for one, prior to the crash from $6,500 to $3,200, Bitcoin macro volatility was this low.
This suggests that should BTC break higher here,