Economist and crypto trader Alex Krüger says he believes one little-noticed indicator is flashing bullish for Bitcoin (BTC).
Krüger tells his 156,000 Twitter followers that BTC’s realized volatility has reached a low last seen three years ago.
“BTC realized volatility has not been this low since July 2020. This chart highlights every time volatility reached a 25% handle (or lower) since 2015.”
According to his chart, Bitcoin’s realized volatility hit 25% or lower 10 times since 2015. In most of those cases, Bitcoin moved to the upside afterward.
Krüger says he believes Bitcoin will likely repeat the upswing price action this time as well, while he also predicts the stock market will continue to move higher.
“Based on this it can be either up or down, although up has been the most recurrent outcome. I’m betting on up. Don’t think stocks are overextended.”
The economist previously said that the crypto market has not yet fully priced in an approval of the BlackRock spot BTC exchange-traded fund (ETF) application. If it gets approved, he says the digital asset markets are likely to soar.
He also said he is closely watching the $31,000 to $37,000 range, where he believes there is a liquidity air pocket from when crypto markets collapsed last year during the disintegration of the Terra ecosystem. He believes if Bitcoin can convincingly enter this range, it will likely go on a massive rally.
“We’re right at the edge of a breakout. Once it breaks, it should keep on running.”
Bitcoin is trading for $29,791 at time of writing, up 1.9% during the last 24 hours.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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