Bitcoin price: Will BTC break $28,500 after record-breaking period of low volatility?
|- Bitcoin volatility has compressed to historical lows and analysts are evaluating both bull and bear market cases for BTC.
- Despite the $1.5 billion overhang of miner deleveraging and decline in BTC price volatility, analysts have noted massive conviction in Bitcoin holders.
- Analysts believe Bitcoin price could witness a breakout soon, set a bullish target of $28,500.
Analysts at crypto intelligence tracker Glassnode argue that Bitcoin’s volatility has hit historical lows and a breakout in BTC is likely. Evaluating both the bullish and bearish scenario for Bitcoin price, analysts noted a conviction among BTC holders in the bear market.
Also read: FTX user hit by million dollar loss overnight, lost hundreds of Ethereum tokens, Bitcoin
What to expect from Bitcoin after volatility hits historical lows
Glassnode analysts evaluated Bitcoin’s on-chain metrics and noted that the asset has come to resemble stablecoins in terms of its volatility. Bitcoin has been trading within an incredibly tight $869 range over the past week. The weekly low was $18,793 and the high $19,662.
BTC-USD weekly price chart
It's important to note since periods of extremely low volatility for Bitcoin are very rare and are typically followed by a substantial breakout higher or lower. Analysts therefore armed themselves with a bull and a bear case scenario from a primarily on-chain perspective.
Analysts observed that the volume of coins transferred in Bitcoin transactions hitting Glassnode’s nodes mempool has witnessed a sustained burst higher since September 2022. The mempool is where all the valid transactions wait to be confirmed by the Bitcoin network.
A high mempool size indicates more network traffic which will result in longer average confirmation time and higher priority fees. Coupled with the high volume of Bitcoin transferred there was a very modest increase in average fee rate paid. These metrics provide a potential view of a changing tide, with a sustained uptrend this increases the odds of a true market recovery.
Bitcoin: Mempool total volume of BTC
Analysts set bullish target of $28,500 for Bitcoin
El Crypto Prof, a pseudonymous Bitcoin analyst, predicts there will be a serious move in BTC. The 116-day and 137-day moving averages are about to cross each other. The analyst argues that every time these lines cross, there is a significant rally in Bitcoin price. The analyst set a bullish target of $28,500 for Bitcoin price in the event of a breakout.
BTC-USD price chart
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.