Why you should watch Bitcoin’s Price Movement this weekend

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Bitcoin, at the time of writing, was trading around the $48,000-price mark, falling almost 5% in the last 24 hours, from $52,535 a couple of days earlier. However, although the beginning of the corrections was obvious, BTC’s on-chain research seemed to underscore a bullish feeling, with two common metrics signalling the same.

Bitcoin’s instability is known to be key to its price rally in the ongoing market cycle. Based on data from Unfolded, Implied Volatility fell to the lowest last seen in January 2021. Interestingly, it has been found that as Volatility Implicated resets to lower levels, it has traditionally originated as a bullish warning. In such a scenario, the price increase of the blockchain corresponds to a lower degree of implicit uncertainty.

In the present situation, the selling pressure could fall and the price of the cryptocurrency may be subject to a breach of $50,000, a two-day high test.

In the bearish markets, the Volatility Implicit is normally greater. Although February saw no bear market, the IV stayed strong for much of the month, leaving less space for a price rebound after touching the $58,330 ATH.

In addition, another measure that flashed bullish signs at press time was Bitcoin’s association with the S&P 500. Since November 2020, when Bitcoin decoupled from Gold, its relationship with the S&P 500 has illuminated emerging trends and the state of the economy.

Why Bitcoin may reclaim $55000 this weekend

Source: Twitter

The recent increase in correlation is a bullish indicator of Bitcoin’s price. The fleeting market appreciation of $52,535 on the charts led to the liquidation of some shorts and forced purchases to fill open positions. Forced purchase does not take off the selling burden, however, in the short term, it contributes to the created demand and purchase, driving the price upwards.

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During the time from 12 February to 25 February, the purchase of a number of shorts filled their available places. It was anticipated that an expiry in $2.5 billion of Options would result in a huge price dip. However, the recovery of $52,535 was a sign of recovery in the short term. The next psychological price barrier is $55,000, and with rising whale behaviour and massive sales, it seems possible that the commodity would reach $55,000 before the fall this month.

With bitcoin known to jump incredibly over the weekends, a quiet one could be dismissed. Ergo, if the pattern repeats itself, backed by a hike in trading volume, we might see $55,000 this Sunday.

Source: Coinstats

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