In the latest announcement sent to users, San Francisco-based crypto exchange Kraken said that some past evidence is pointing to an impending major Bitcoin bull run.
Hints at the sharp upside movement of Bitcoin in the coming days, the report states that the leading cryptocurrency broke out of a bearish consolidation that began in late 2017.
Citing past evidence, the Kraken report mentions that the latest breakout marks the beginning of an important bullish wave, strongly supported by macro factors.
This report was published by Kraken after the Bitcoin price successfully crossed the $ 10,500 and $ 12,000 levels in a short time. Although there is some resistance along the way, the BTC / USD pair still favorably forms critical supports at this zone and looks for higher side resistance.
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The report also notes the fact that Bitcoin's annual volatility has dropped 23% by the end of July. This phenomenon is called ‘pocket compression’ and they often precede an upside movement. Technically speaking, the Kraken report draws on this phenomenon to predict an upcoming bull run for Bitcoin.
The exchange further mentioned that the volatility of BTC / USD spiked towards the end of July demonstrating the start of a new uptrend. Furthermore, the exchange predicts that BTC volatility can surpass 100% as the cryptocurrency will increase in price by 50% to 200% in the near future.
In terms of historical trends, the 12 most recent cases observed show that whenever volatility decreases between 15-30%, the value of the asset tends to increase over the next few months and usually maxes out at 140%. In exceptional cases, upside momentum can reach 196%.
By Tran Cong
Kraken exchange's report: Bitcoin is about to welcome a huge rally
