While Bitcoin has seen extreme volatility on a day-to-day and week-to-week foundation, it is flat on a macro scale. The crypto-asset has traded in the identical $3,000 range for five months now. This has provided macro volatility indicators to recede to critical historical points.
Volatility analysis by one fund manager in the area implies that it will be critical when a breakout happens. He believes it will be so volatile that Bitcoin could hit $20,000 in three months if it tried to break higher now.
Next Bitcoin Breakout Likely to Be Explosive
Bitcoin’s subsequent macro breakout is likely critical, as claimed by an analysis from crypto fund manager Mohit Sorout. Sorout is a founding partner of Bitazu Capital.
He recently shared this chart below, which shows that Bitcoin’s volatility is extremely low on a macro basis. It’s reaching lows seen rarely in BTC’s history, with these levels only occurring approximately once a year.
This is neither bearish nor bullish in its own right.
Despite that, if Bitcoin breaks higher, historical trends indicate that the responding move should be explosive. Each rally and crash after volatility was this low historically was explosive: for one, before the crash from $6,500 to $3,200, Bitcoin macro volatility was this low.
This suggests that should BTC break higher here, and it will rip higher to new year-to-date highs:
“Calm before the storm. If $BTC was to breakout today, it would most probably reach its previous ATH of $20k within 3 months.”
Chart of BTC’s price action over the past few years with a volatility analysis by crypto trader Mohit Sorout.
Fundamental Analysts Agree
Fundamental analysts agree
Dan Tapiero — the co-founder of DTAP Capital, Gold Bullion International, and other companies — lately said that Bitcoin could rapidly surge higher in the years ahead:
“Tremendous long term Log Chart of #Bitcoin projects up 5-10x on this run. Just breaking up NOW. Should last a few years as 2.5yr consolidation is fantastic base for catapult up. Break of old highs will have explosive follow through. Time to sit and be patient.“
Vinny Lingham, CEO of Civic, has repeated this. He stated that BTC could appreciate 200% to 400% in the coming 12 months as macro trends align in BTC’s favor.