Lately, the price of Bitcoin has been fluctuating due to overall market turbulence, causing broader fear and uncertainty within the general crypto landscape. Considering the current trend of several indicators, the digital asset could be poised for more volatility in the upcoming days.
Bitcoin’s Price Set To Experience High Volatility Shortly
As Bitcoin approaches crucial levels that could abrupt price swings, its potential for high volatility is growing as cited by Alphractal, an advanced platform for investment data analysis. The platform warns that BTC might encounter high volatility in the near future, leading to huge liquidations that will inflict pressure on investors and traders.
This prediction of impending high volatility is occurring against the backdrop of a more uncertain market, where bulls and bears are competing for dominance. Alphractal prognosis was made after observing the Aggregated Liquidation Levels Heatmap metric in the last 7 and 14 days.
According to the platform, there were large concentrations of longs on major crypto exchanges over the past 7 days, creating multiple huge liquidation pools with a maximum pain point that is a little below $60,000. Meanwhile, a review of the past 14 days shows that the highest liquidation level is still at the $67,000 price level.
Alphractal further highlighted that it is typical for new liquidation levels to develop above market price, as well as when the price is growing and falling. This is due to the fact that liquidity traces are left behind by market markers, which are subsequently searched for over time with great accuracy in spite of the time frame.
With the digital asset drawing closer to the aforementioned support and resistance levels, many investors are gearing up for BTC’s next move which could result in either more consolidation in the market or a sharp price increase to a new all-time high in the upcoming months.
At the time of writing, Bitcoin was trading at $61,970, indicating a 1% decline in the past day. However, in the longer period, the price has increased by 1.35% in the past week and 12% in the past month.
Industry Leaders Unshaken By BTC’s High Volatility
Despite the high volatility of Bitcoin, top figures in the crypto industry like Cathie Wood, the Chief Executive Officer (CEO) of Ark Invest Management Firm remain very bullish about its potential in the long term.
In a recent interview on Bloomberg Intelligence, the CEO reiterated her confidence in her previous forecast of the crypto asset reaching $1 million in a broader outlook in light of heightened market volatility and macroeconomic uncertainty.
According to Wood, her confidence and the firm’s in Bitcoin tend to rise with the increase in volatility and uncertainty in the global economies. She further attributed her belief to a recent inflationary scare ultimately driven by a supply chain, in which BTC served as a hedge during the high inflation period.
Featured image from Unsplash, chart from Tradingview.com
Source: https://bitcoinist.com/bitcoins-high-volatility-potential-grows/