Bitcoin volatility fading away: where from here?
|- BTC/USD is hovering around $4,300.
- Mati Greenspan says volatility is good for Bitcoin's popularity.
Bitcoin is hovering around $4,300 handle, locked in a narrow range with the upper border at $4,400. The first digital coin has calmed down after a volatile week as the market players seek to understand what comes next.
According to Mati Greenspan, a senior market analyst at eToro, volatility growth brought the discussion of crypto mass adoption issues to the forefront.
“Certainly, it would be better for the use case of cryptocurrencies if they remained more stable, or to see a slow but steady increase in prices. But let’s be straight, would bitcoin be as popular as it is today if not for the wild volatility?” he commented.
Mr. Greenspan believes that the bull run of 2017 brought a vast amount of new users to the crypto universe.
“The outrageous bull run of 2017 has been largely responsible for bringing an unprecedented number of new users into the network but it seems that excitement can be generated on the way down as well.”
Bitcoin's technical picture
From the short-term point of view, BTC/USD is supported by SMA50 (1-hour) at $4,166. Once this level is cleared, the downside may be extended towards critical $4,000 with SMA200 (1-hour) on approach. A sustainable move under $4,000 with expose $3,900-$3,870 area
On the upside, the nearest resistance lies with congestion zone $4,500, which needs to be cleared before we can proceed to the next psychological hurdle $5,000.
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.