coinedition.com
Cody Buffinton, the Altcoin Buzz YouTube channel’s host, believes the anticipated Bitcoin volatility will happen sooner rather than later. According to Buffinton, the upcoming volatility for the flagship cryptocurrency could rival its 40% January 2023 gains.
In a recently uploaded video, Buffinton noted Bitcoin price acted in a tight range throughout July. Buffinton observed that BTC’s price used the $30,000 mark as a focal point for the sideways behavior. According to him, analysts perceive the BTC price behavior as a test for the bulls and bears.
Buffinton agrees with Bitcoin analysts that Bitcoin’s recent behavior is a test of investors’ patience, which happens before major moves. The Altcoin Buzz host noted he would stick with his well-defined boundaries because he was not sure which way the volatility would go.
Buffinton thinks Bitcoin volatility is imminent, using Bollinger bands as evidence. He used a visual display of the indicator to show that the Bollinger bands on Bitcoin’s daily chart is in its tightest state since the beginning of 2023.
Bitcoin’s price has almost doubled since the beginning of 2023. It started the year at $16,530, and in the past seven months, the pioneer cryptocurrency reached a yearly high of $31,818, marking a 91.84% rally. Bitcoin’s price consolidated after reaching the year’s high and traded at $29,920 at the time of writing.
At that price, Bitcoin is retesting the powerful support around the $30,000 region. The area provides psychological and historical support for Bitcoin.
Several analysts predict there would be increased volatility in the Bitcoin market. They predict this because of how the technical indicators have aligned and the upcoming Bitcoin halving event in Q1, 2024.