Traders Prepare For Major Volatility As Bitcoin Soars Towards Record High

According to data from Coin Metrics, 30-day volatility has been sustained between 0.03, and the 180-day volatility has consistently fallen from 0.05. As a result of the current rally by bitcoin, volatility has stayed low.

After a brief fall to $10,000 at the start of September, bitcoin (BTC, +6.24%) has gained an estimated 80%.

Mike McGlone, a Senior Commodity Strategist for Bloomberg advised that considerations should be made for responsive selling of Bitcoin as the cryptocurrency gets much closer to its highest market price of all time.

“wave of institutional flows appears to be just getting started and offsetting the relative youth of bitcoin’s past, keeping its upward trajectory intact,”

Mike McGlone

Sam Trabucco, an expert trader, also made a forecast that there would be elevated volatility of the market in the coming years regardless of the side in which the investors choose to pitch their tents. Sam Trabucco of Alameda Research is a quantitative trader. 

Since most traders depend heavily on historical price action, the market would most likely repeat its reaction to the former all-time highs. Joseph Todaro also maintains that attaining an all-time high new will drive sales significantly. Joseph Todaro is a partner at Greymatter Capital.

Bitcoin’s reaction in 2017 to the all-time high then was significant sell-side pressure, according to Todaro. The same response is also expected from the cryptocurrency as it approaches $20,000, and then a consolidation and finally, a brand-new upward momentum.

Author: Zoran Spirkovski

Copywriter, Freelance Journalist, Blockchain Enthusiast. Writing about Crypto since 2016. Loves to travel and experience different cultures. Highly ambitious and with an ever-increasing attraction towards quality work, products, services, and experiences. You can find him on Telegram where he has been known to spend his time making friends, and doing business. @ZoranSpirkovski

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