Bitcoin Prices Look Stagnant Lately, What's Up?

Potential for future Bitcoin (photo: Pixabay)

JAKARTA - In recent times the price of Bitcoin seems to be in a state of silence or stagnant. However, there is actually an interesting sign that hints at major changes in its journey.

According to Tokocrypto Trader, Fyqieh Fachrur, this calmness in Bitcoin price movements is in line with the decline in annual volatility observed in trading transactions. The average annual volatility of Bitcoin within 30 days, is seen to decline to its lowest point in the last seven years.

Fyqieh menjelaskan, harga Bitcoin yang sideways, ditambah dengan penurunan volume perdagangan, sebenarnya memerankan adanya ketidakpastian jangka pendek di antara para pelaku pasar, baik investor dan trader.

In other words, many Bitcoin investors are hesitant about the direction of this crypto asset. Of course, there are many market factors they need to consider.

"One of the factors that have an impact is hope regarding the approval of Bitcoin ETF in the United States. Anticipation of this has actually helped keep Bitcoin prices above the supporting level, which is 28,500 US dollars since July," he said.

But on the other hand, according to Fyqieh, concerns that the Fed will continue to raise interest rates in the near future have also shifted investors' interest towards the US dollar.

Fyqieh estimates that Bitcoin is likely to experience a decline retest of up to a level of 28,900 US dollars or around Rp442 million. One of the new indicators hinting at this potential large movement is Bollinger's Bitcoin Bands.

Bollinger Bands is a technical analysis tool used to predict the trend of a market. When Bollinger Bands narrow, this is often followed by a strong increase in volatility.

"Nevertheless, it should be noted that the Bollinger Bands are not a tool to predict trends, and cannot indicate a definite direction of Bitcoin movement," explained Fyqieh.

In the short term, it appears that Bitcoin will experience sideways until next September. From there, carrying out the right dollar-cost average (DCA) strategy to gain potential profits in the long term can be a wise choice.