octopus, the United States’ major crypto exchange, released a report that predicts Bitcoin (BTC) will rebound between 50% and 200% in the coming months.
The report notes that Bitcoin posted a 21-month volatility low of just 23% on July 24, stating that BTC’s 12 all-time volatility lows (between 15% and 30%) are typically followed by a 140% increase.
Since August is usually the third most volatile month for BTC price fluctuations, Kraken predicts this The upward momentum generated by Bitcoin at the end of July will continue for a few more months.
Bitcoin’s rally at the end of July defies history
Kraken emphasized that Bitcoin’s recent rally resulted in the second strongest July for BTC price action since 2011July was usually the third weakest calendar month for Bitcoin.
Bitcoin’s jump of 14.5% between July 27 and 31 brought the month’s overall performance to a 24% profitAccording to Kraken, the market continues to position itself in momentum.
Before moving July produced what the report describes as the “Pent Pocket” of weak volatility. Ten out of twelve previous cases Bitcoin flowing into a suppressed pocket was followed by gains of more than 196%.
Kraken appreciates that The last seven days of the month accounted for 44% of the total trading volume in July.
BTC is correlated with gold
The report also notes that Bitcoin’s 30-day correlation with gold rose to a one-year high of 0.93 on July 31.
The peak comes after the monthly correlation fell to a 10-month low of -0.66 on July 2nd.This contradicts predictions that gold and bitcoin will emerge as popular “safe” assets and move at the same pace during the COVID-19 pandemic and recession.
Don’t stop reading: