Bitcoin price news: BTC could be due a ‘powerful move soon’ an expert has said
Jesse Colombo, a registered investment advisor who warns about bubbles and future financial crises, was writing in Forbes magazine when he made the comments.
He said: “Ironically, in the financial markets, unusually low volatility often occurs before powerful, volatile moves – the ‘calm before the storm,’ so to speak.
“When Bitcoin finally breaks out of this pattern in a convincing manner, a significant move is likely to occur.”
He added: “Bitcoin volatility is at unusually low levels according to Bollinger BandWidth, which further confirms that a major move is likely to occur soon.”
Bitcoin is currently in a so-called “bearish” market, which means it is falling in value over time.
But a number of analysts are not ruling out a “bullish breakout” – an upsurge in value – within the next few months of trading.
Commenting on the bearish trend, Mr Colombo said: “Descending triangles are bearish patterns, so there is a higher probability of a breakdown from here, but it is important to be open to the idea of an upside breakout as well.”
The world’s most popular cryptocurrency has suffered significant price drops throughout 2018 as it experienced vast swings in value over short periods of time.
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A chart shows Mr Colombo’s descending triangle
Bitcoin price news: Bitcoin’s descending triangle has been forming since February/March of this year
BTC’s value reached record highs in January, hitting more than $20,000 (£15,000) per coin, before plummeting to a low of about $5,900 (£4,600) in July, according to CoinMarketCap.
Since then, prices have not returned to their former highs, with the digital currency valued at $6,304 (£4,908) at the time of writing.
More recently, BTC has experienced a gloomy couple of days of trading as its price fell sharply by $200 (£157) in just 24 hours between October 29 and 30, according to CoinMarketCap.
Mr Colombo’s intervention comes as the digital asset celebrated its 10th birthday yesterday – marking ten years to the day since a paper was published by an anonymous individual or group of so-called cypherpunks called Satoshi Nakamoto.
Bitcoin price news: a chart shows BTC’s price over the last 24 hours
Bitcoin price news: BTC’s value dropped suddenly at the end of October
Commenting on BTC’s 10th birthday, Maya Kumar, head of UK and Ireland Luno, said: “Satoshi Nakamoto’s now famous paper has paved the way for the next phase in the evolution of money.
“The invention of Bitcoin and the underlying blockchain has allowed us all to reimagine money and a global financial system like never before.
“We are seeing a new parallel financial system being built in real time, and we believe that this new and better financial system will have a meaningful and long-term positive impact on all members of society, no matter who you are or where you’re from.
“Like all systems, it is not perfect yet, and will always continue to evolve, but we believe it is a significant step change, and particularly relevant for the world we live in today.
READ MORE: Bitcoin price swing likely
Bitcoin is the world’s leading cryptocurrency
“Everyone now has a chance to participate in this new economy by buying into the evolution of money and become a part-owner of the financial system of the future.”
Danny Scott, co-founder of CoinCorner, said: “Having been involved in the Bitcoin space since 2013, I believe that Bitcoin is the most ground-breaking technological innovation since the internet.
“Just like the internet, it will take time for Bitcoin to mature and become ‘mainstream’.
“30 years ago the internet was only used by the techies and geeks – now it affects our lives every single day, having changed the way we communicate, work and live.
Bitcoin is a highly volatile asset and sometimes experiences vast swings in its value
“I believe Bitcoin will one day be as influential in everyday life for people around the world, not only from a financial aspect but through the products that will be built on top and around the technology.”
Piers Courtney, Globalblock Analyst, said: “With indications that this year’s bear market might be at an end, we should look back at the 10-year history of the progenitor of all cryptocurrencies: Bitcoin.”
Mr Courtney, who pointed out the “true birth of Bitcoin would be January 3 2009, when the first 50 bitcoins were mined”, argued there was a chance a single coin could one day be worth $1million (£778,100).
But he added: “Although it is worth saying that past performance is not indicative of future results.”