Bitcoin has undergone a strong rally over the past day, continuing higher past the $13,500 levels it held yesterday. At the highs of the past 24 hours, the leading cryptocurrency traded as high as $14,100.
Bitcoin currently trades for $13,700, establishing another floor as it looks to move even higher in the days ahead.
A prominent cryptocurrency analyst says that if the cryptocurrency can “flip” $14,100 into support, it will result in “inverse capitulation.” In other words, Bitcoin could surge massively higher, likely by dozens of percent, if it manages to turn that level into support.
It isn’t exactly clear where he expects the Bitcoin rally to end in the near term, but the analyst recently shared the chart below. Attached to the chart was the comment that “Bitcoin is undervalued. What seems to be depicted is some sort of mining-based indicator that surges rapidly after halvings and predicts when Bitcoin is at macro turning points.
Bitcoin Hasn’t Even Seen Its True Breakout Yet
A crypto-asset analyst shared the chart below on October 31st, sharing the sentiment that Bitcoin’s volatility is still barely off the lows. The chart below depicts BTC’s one-day historical volatility index since the start of the year. As can be seen, volatility is still far below the highs that were printed during March’s over 60% correction.
This analysis suggests that once Bitcoin breaks the trendline depicted in green, it will begin a move of macro importance. While current trends suggest that will be a move to the upside, BTC could reverse lower from here if another liquidity crisis were to transpire.
Bitazu Capital’s Mohit Sorout thinks that this volatility results in a strong move to the upside. He recently shared the chart below, showing how low Bitcoin’s macro volatility is right now compared to historical levels.
“BTC saw these prices in Dec 2017 then once in Jun 2019. We’re here again today but volatility hasn’t even started picking up. Yes this time is different.”, trader Mohit Sorout tweeted.
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