Michaël van de Poppe said the results of the Fed’s survey were much worse than expected, but he believes Bitcoin will rally. According to Glassnode, historical examples with 1-week moving volatility below 28 have preceded significant price moves in a bearish market.
According to data from TradingView, the price of Bitcoin (BTC) reached USD 19,672, 3.5% above its weekend lows.
The BTC/USD pair rose alongside stocks, with the S&P 500 and Nasdaq Composite Index gaining 2.7% and 3.2%, respectively.
Weak US economic data, like the fall of the Empire State Manufacturing Index to -9.1 in October, accompanied the action. That was much lower than the forecast of -4.3 and the -1 reading in September.
The New York Federal Reserve commented that an October survey revealed that manufacturing activity declined in the state.
They said that the General Business Conditions Index fell by eight points to -9.1. While 23% of the respondents reported that conditions had improved during the month, 32% said they had worsened.
Michaël van de Poppe, the CEO of trading company Eight, responded by saying the results were much worse than expected. However, he believes that Bitcoin will rally despite the weakening in the economy.
The US Dollar Index (DXY) continued to pull back on recent gains, targeting 112 and dropping by 0.65%.
Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, believes the 2022 risk asset deflation and the Fed’s tightening portend an elusive endgame despite the global recession.
The expert considers it necessary to pay attention to lower commodity prices to reduce the Fed’s pessimism and falling money supply. He believes that cooling crude oil can help recharge Bitcoin and gold.
Research by Experts Reinforces the Prediction of Imminent Volatility
Traders expect some relief to reach crypto markets weekly, but other perspectives confirmed that nothing had changed for Bitcoin in months.
According to chain analyst Glassnode, it is strange for BTC markets to reach periods of such low volatility. In addition, almost all of those cases occur before a highly volatile move.
Besides a chart of the realized volatility of Bitcoin, researchers like analyst Checkmate said the market had reached a crucial point.
The experts mentioned historical examples with 1-week moving volatility below the current value of 28%. They said they preceded significant price moves in both directions in a bearish market.
Glassnode concluded there was a slightly discernible directional bias in futures markets, although the fuel for a potential price breakout exists. For example, BTC-denominated futures open interest reached new all-time highs.
The report indicated that volatility might be on the horizon while the prices of Bitcoin usually remain stagnant for a long time.
Bitcoin is trading at around USD 19,474 and has accumulated a 1.8% gain over the last 24 hours. While its daily trading volume is above USD 25.73 billion, its market capitalization is about USD 373.55 billion, according to CoinGecko.
Investors should research cryptocurrencies like Bitcoin before buying them to know their all-time high, behavior, and possible future price. It is a matter of time before seeing how the market influences the value of the pioneering cryptocurrency.
By Alexander Salazar
