Bitcoin’s current price actions are being perceived as ‘the calm before a storm’.
As of the middle of the second week of October, 2022, BTC’s price action remains range-bound, hovering around the $19,100 mark and yet to clear $20,000. Many analysts are considering this a sign of the market bottoming out, yet a few more are expecting a detachment from the US equities market.
As Delphi Digital pointed out, the Bollinger Band Width Percentile (BBWP) indicator is signifying there might be a sharp move for BTC in the near future: “Historically, BBWP readings above 90 or below 5 have marked major swing points”. While the BBWP is not under 5 yet, the researchers at Delphi further stated, “Since Q2 2017, BBWP readings above 90 or below 5 have previously led to an upside of 204% or a downside of -51% on average”.
Of course, it’s still too early to say for sure if BTC has really stopped moving in tandem with the equities markets or reached a bottom as a market. However, it’s undeniable that history says lengthy periods of sideways moves lead to accumulation and distribution phases for cryptocurrencies.
Meanwhile Glassnode analysts are also expecting sharp movements in BTC’s price soon, stating how unusual it is that even as events like inflation and central bank rate hikes affect global finance immensely, Bitcoin is staying relatively stable: “Recent weeks have seen an uncharacteristically low degree of volatility in Bitcoin prices, in stark contrast to equity, credit, and forex markets, where central bank rate hikes, inflation, and a strong US dollar continue to wreak havoc.”