Over the past 24 hours, Bitcoin has recovered from $6,800 towards $7,000 in a period when many analysts suspected BTC to be on $6,500 and $6,300.
Optimistic end of day
Bitcoin, which traders predicted will fall in the mid-range $6,000, rebounded to $7,000 in one move, and if BTC rises above the $7,100 mark in the next 24 hours, the switch to $7,000 considered confirmed. Lil Uzi Vertcoin, a well-respected technical analyst, said on August 30:
“BTC surpassed the Bollinger bands and rejected the Ichimoku cloud resistance, $7,130 is the resistance to break, but it now looks more difficult and is expected to provide good support from $6,700 to $6,500. I’ll probably wait until we again test $6,500- $6,600.”
Some traders suspect that the trend change was due to the expiration of the CME Bitcoin futures market on September 1st , which could result in a brief push and an upward move.
Previously, CNBC Fast Money Contributor and BKCM’s CEO Brian Kelly said that a brief push by the US Bitcoin futures market may contribute to a 10 to 15 percent short-term recovery for Bitcoin, leading to other small capitalization tokens and cryptocurrencies to recover through increased margins.
“Coins are still correlated right. For the past 60 days, it has been truly leading – much of it had to do with speculation about an ETF. But what you’ve seen today is stuff like Ethereum, which deviates nearly 10 percent from yesterday’s lows, stuff like Stellar Lumens – that’s still pretty good. So yes, if you get a 10 or 15 percent run on Bitcoin through a short press, it should also support everything else, “Kelly said earlier this month.”
Should the expiry of Bitcoin futures affect the BTC price in a manner similar to that at the beginning of August, a positive upward movement is to be expected.
Over the past few months, BTC has been very volatile in the range of $6,000 to $10,000, rising from $6,000 to $8,000 in 30 minutes and falling from $10,000 to $7,000 in hours. Analysts from Diar said:
“Monthly volatility has fallen from 8% to 3% since December 2017, when futures trading began. Whether or not bitcoin futures are in play in this case would be speculative given that both CME and CBOE Bitcoin futures account for only 2% of the trading volume versus spot trading”.
In August, it has showed the highest stability in 14 months, showing that the worst part of the bear market is coming to an end and the market has become more stable since the beginning of 2018 due to the 80% correction.