Expert: Bitcoin 'storm' is coming
A leading economic analyst has predicted that Bitcoin is due a “powerful” increase in volatility.
Jesse Colombo, a registered investment advisor who warns about bubbles and future financial crises, wrote in Forbes magazine that a prolonged period of reduced volatility could be the calm before the storm.
“Ironically, in the financial markets, unusually low volatility often occurs before powerful, volatile moves – the ‘calm before the storm’, so to speak,” he wrote.
“When Bitcoin finally breaks out of this pattern in a convincing manner, a significant move is likely to occur.
“Bitcoin volatility is at unusually low levels according to Bollinger BandWidth, which further confirms that a major move is likely to occur soon.”
The recent trend in Bitcoin’s value has been for a slow fall while the cryptocurrency has endured significant price drops throughout 2018.
“Descending triangles are bearish patterns, so there is a higher probability of a breakdown from here, but it is important to be open to the idea of an upside breakout as well,” added Colombo.
In contrast to the general trend, Bitcoin’s price fell sharply by $200 in just 24 hours this week but recovered half of that value to currently stand at $6,355.
This week is the tenth anniversary of Satoshi Nakamoto’s original whitepaper outlining the need for a decentralised, virtual currency – which led to the foundation of Bitcoin.
Flick through our interactive digital magazine