Bitcoin Expects Volatility Jump Next Week: 3 Factors That Support It
Bitcoin has come close to a phase of increased price fluctuations. What factors, according to traders, are driving the growth of Bitcoin volatility next week?
Bitcoin entered a phase of consolidation
The parabolic growth of Bitcoin, which traders talked about so much in early August, slowed down. Analyzing the data from the technical charts, it is clear that Bitcoin is in a phase of consolidation in a price range with an upper border of $12,000. On August 17, the flagship cryptocurrency again crossed the psychological price barrier and peaked at $12,486. But Bitcoin was unable to close the 24-hour chart at this level and rolled back.
The long-term consolidation of Bitcoin raises concerns among traders, because a similar pattern has already kept the crypto market in the dark for about 3 months, starting in May and until the BTC price soared to $11,000 in July. High volatility is a derivative of such a prolonged stagnation in price movement, so there is a chance that a similar scenario will play out again.
A trader under the pseudonym “Mayne” has identified the price range that is critical for Bitcoin. The trader noted:
Bitcoin options are closing
The expiration of Bitcoin options is one of the factors that can provoke a sharp fluctuation in the price of the flagship cryptocurrency. According to Deribit, the closing date for Bitcoin Options worth $500 million is on August 28. This event was commented by a trader specializing in options:
Technical analyst Josh Olshevich raised concerns about rising Bitcoin price manipulation in early September. It is quite possible that during this period, large transactions from the whales will be recorded in the crypto space.
Blockchain is suffering losses
Bitcoin hash rate and other key blockchain metrics have declined last week. It was reported by experts from Glassnode. They noted the following:
Thus, the close of this trading week may significantly affect the trajectory of Bitcoin in early September and become a signal for a serious correction in the price of the crypto asset.