Bitcoin Price Latest: BTC/USD Remains Lifeless But Has it Found a Bottom?
- Data shows Bitcoin volatility is extremely low
- Attention remains on the SEC and their views on cash Bitcoin ETFs.
- PayPal launching a US dollar-backed stablecoin.
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Bitcoin continues to show little sign of life with the cash price stuck in a narrow range over the last 10 weeks. Volatility is at a multi-month low with analysts at Bitcoin on-chain data specialists Glassnode pointing out that ‘The 30-day price range is even more extreme, constricting price to just a 9.8% band over the last month, and with only 2.8% of all months being tighter.Periods of consolidation and price compression at this magnitude are extremely rare events for Bitcoin.’ The 14-day ATR volatility indicator is also showing the uber-low levels of current price action and is at a low last seen in early January this year
The BlackRock spot Bitcoin ETF fever that sparked the last round of volatility in mid-June seems to have faded with the SEC not expected to give a decision on any of the spot Bitcoin ETFs until September at the earliest. The low volatility suggests that holders of Bitcoin are not selling ahead of any decision, while buyers remain reticent at current levels.
In other crypto news, online payments giant PayPal announced Monday the upcoming launch of a US dollar-pegged stablecoin PayPal USD (PYUSD). According to the news release, ‘PYUSD is fully backed by U.S. dollar deposits, short-term U.S. treasuries, and similar cash equivalents, and can be redeemed 1:1 for U.S. dollars.’
Bitcoin remains stuck in a $28.6k to $31.8k range but sits near the lower end of this range. The outlook remains mixed with the 20-dma crossing below the 50-dma, while BTC/USD is supported by the longer-dated 200-simple moving average. Despite the current low levels of volatility, Bitcoin could easily make a run at either support or resistance in the coming days. To do this there needs to be a fundamental driver as the technical picture is mixed at the moment. Bitcoin may be down, but is definitely not out.
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Bitcoin (BTC/USD) Daily Price Chart – August 8, 2023
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