Bitcoin price at the moment is pulling a significant leg down as the bears appear to have dominated the rally to a larger extent. The asset, recently, marked the revival of a bullish trend by breathing through the resistance of the huge descending triangle. However, the current plunge may drag the price lower and could drop back within the triangle very soon.
The trading volume also failed to support the bullish trajectory, therefore, the possibility of re-entering the same demand region emerges. If the BTC price continues to extend the apex of the descending triangle, then it may remain within the bearish captivity for a long time and could fail to ignite a successful rebound until the markets witness strong positive movements.
Interestingly, a popular analyst, Micheal van de Poppe believes a strong price action is fast approaching as the Bitcoin Historical Volatility Index(BVOL) has dropped below 25.
The BVOL has been below 36 levels a coupleof times in the past which resulted in a big price movement later. Currently, the levels are approaching the same area and hence a significant move may occur during this month’s end or at the beginning of November.
As Bitcoin price had kicked off a strong upswing in the last couple of months of 2020 that led to a huge bull run in 2021, a similar movement is expected if the BOVL resembles the 2020 levels. Therefore, after undergoing a bearish price rally since the beginning of 2022, the trend is expected to change, notably before the end of the year.