Bloomberg: Bitcoin is consolidating, waiting for a major breakthrough

Bloomberg says it remains bullish on Bitcoin (BTC) as long as it remains above key resistance levels.

Bitcoin Bollinger Bands Source: Bloomberg

Bloomberg analyst Mike McGlone's latest report believes that Bitcoin is consolidating. He speculates that due to the decline in volatility, the Bitcoin price Bollinger Bands are at their lowest point ever.

Key range is $6,500-13,000

He believes that Bitcoin is preparing to break through the overhead resistance level of $13,000. At the same time, he said that it is crucial that the price does not fall below $6,500:

“Our chart shows the upward sloping 260-day moving average for the cryptocurrency and Bollinger Bands, roughly marking the 2019 high and 2020 low. By this metric, around $13,000 is a good initial resistance target when Bitcoin price leaves the key range. A sustain at the bottom range of around $6,500 would derail the uptrend.”

Volatility close to gold

McGlone observed that relative to the same measure of gold, Bitcoin’s volatility is the lowest since the record bull run in 2017 and is well below average:

“Its 260-day volatility is about 4.4 times that of gold on the same benchmark, the lowest since April 2017. The average volatility is about 6.4 times, with a peak of 12.2 times in 2011.”

Recently, Bloomberg predicted that Bitcoin could revisit its all-time high of $20,000 or even soar to a new high of $28,000.