- BTC/USD is consolidating with bearish bias amid growing volatility.
- The critical support for BTC lies at $8,300.
Meanwhile, Bitcoin volatility has grown significantly and averaged at 4.5% in May as compared to 3.5% in April and 1.1% in March, according to the statistics published by Bloomberg. This is the highest level on record since December 2018, when the volatility was registered at 4.2%.
Bloomberg Galaxy Crypto Index confirms the volatility increase as the trading envelope bands – the spread between upper and lower price range levels – widened significantly.
“When volatility gets high it should be indicative of extremes in price. The market is getting a bit stretched here from a trader’s standpoint,” Bloomberg Intelligence analyst Mike McGlone explained.
Meanwhile, BTC/USD is changing hands $8,560, down over 3% from the recent peak of $8,944 reached on Monday. The coin is moving in the range with a bearish bias amid speculative positioning and technical correction. Strong support lies at $8,300, which is the upper boundary of the recently broken range. Once it is cleared, the downside is likely to gain traction with the next focus on psychological $8,000 followed by the middle line of 1-day Bollinger Band at $7,870.
On the upside, we will need to see a recovery towards the recent high of $8,944, while a sustainable move above $9,000 will set the bull’s ball rolling and open up the way towards $10,000.
BTC/USD, 1-day chart
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