Bitcoin price has been quite stable in the past 6 weeks which is unusual for bitcoin. It is exchanging in the range of $6100 and $6900. In addition, it is trading in a more wider range between $6000 and $8000 for the 5 months now. This is unusual for the bitcoin price which is known for its extreme volatility. However, indicators are on the bulls side and an uptrend is predicted in the coming weeks.
In this article, we will cover 3 unique perspectives why Bitcoin is probably going to rally in the following 2 to 3 weeks.
Bitcoin price has gone up always in November
Checking the bitcoin price history since 2012 we find in November the price always closes higher than the opening price. This is a good indicator and below you can find a seasonability chart of these results. There are 2 charts, one including 2013 and 2017, and another excluding those 2 years when bitcoin had the biggest spikes in price. November has been always an incredible month for Bitcoin. December also has been generally a good month but not always.
Why this basic snippet of data is so important is because any push higher from current levels will have an exceptionally bullish impact for Bitcoin’s price. That is because it will create a higher high and bulls are waiting for this to happen in order to confirm a bull trend. If the price goes up in the range of $7400-$8400 there will be a massive bullish sentiment because of the bullish trend confirmation. If this somehow managed to happen it would be incredibly bullish for Bitcoin in any case, and for the entire crypto market too.
The inverse is valid too: any push in the downside will make a breakdown in graph terms. This would concern if Bitcoin’s price closes for under $6,000.
Historically, Bitcoin’s low volatility period was followed by an upside
Despite the high volatility of bitcoin if we look at the historic charts we found that there were periods of low volatility where the price had a very tight range. And every time we find this pattern in the charts we see that it is followed by an upside trend.
An example of that is the 2015 chart which you can see below. That is after Bitcoin topped at $1174 in January of 2014, smashed during that time to $167, and it balanced out somewhere in the range of $216 and $296 from Feb to Oct 2015 preceding the bull market that came after that.
Another thing to be noticed in this chart is the false breakout in August which is similar to what happened in July 2018.
Bitcoin versus Nasdaq
Another perspective is the relationship among’s Bitcoin and Nasdaq.
The two assets have been trading in the same ranges in the recent years with very rare cases of divergences which tended to last between 4-6 weeks.
So a way to analyze this is to look at Nasdaq trend where is expected to point in November. Is Nasdaq expected to rise in November?
Despite the fact that there a lot of instability in tech stocks right now the Nasdaq index is going to enter a strong support zone. And a falling under this support sone is unlikely, at least in the short term.
Summary:
1) November has always been always a positive month for Bitcoin
2) Historically Bitcoin’s low volatility periods were followed by an uptrend
3) Bitcoin vs Nasdaq
All these 3 elements point to the same thing, that the bull market for bitcoin is near the corner and of course Altcoins will follow at least many of them.