Bitcoin price analysis: BTC/USD recovery attempts capped by $6,200; Bitcoin not as volatile as it may seem, research shows
|- BTC/USD movements are contained by $6,100-$6,200 range.
- Researchers proved that Bitcoin volatility matches traditional markets.
After a short-lived dip to $6,060 low on Thursday, BTC/USD found a floor at $6,100. The recovery attempts have been limited by $6,216 handle so far, which means that a stronger trigger is needed to push the coin out of this range. BTC/USD is changing hands at $6,190, mostly unchanged in the recent 24 hours.
Bitcoin's technical picture
A sustainable movement above $6,200-$6,216 congestion zone will open the way towards $6,300 followed by SMA50 (1-hour) at $6,340, where fresh selling interest is likely to appear. However, if this area is cleared, the upside movement will start gaining traction with the next aim at the broken downside trendline at $6,480 strengthened by SMA200 (1-hour) and psychological $6,500.
On the downside, the critical support is located at $6,100, strengthened by Thursday's low at $6,060, Once below, the sell-off will continue to $6,000.
Pretty stable
A recent study performed by Stanislaw Drozdz from the Institute of Nuclear Physics of the Polish Academy of Sciences revealed that Bitcoin is much more stable than it might seem. The researcher found out that the coin market is very similar to traditional financial markets in terms of stability.
“When new emerging financial markets started to appear in Central and Eastern Europe after the collapse of socialism, the question of their stability naturally arose. A number of statistical criteria were identified at that time, making it easier to assess the maturity of the market. We were curious about the results we would get if we used them to look at the Bitcoin market, currently valued at hundreds of billions of dollars,” Stanislaw Drozdz wrote.
The research team analyzed Bitcoin prices in a period from 2012 to April 2018 and the rates of return over the same timeframe. They found out that the volatility of rates of return is comparable to mature markets.
BTC/USD, 1-hour chart
Get 24/7 Crypto updates in our social media channels: Give us a follow at FXStreet Crypto Trading Telegram channel
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.