It’s been a boring weekend, with reviewers waiting for the excitement to return. In this environment, Bitcoin (BTC) sees its price action erase all traces of the week’s volatility. Meanwhile, analysts warn that volatility is long overdue. For this, Bitcoin (BTC) remained firmly attached to $19,000 until its weekly close on October 16.
“Bitcoin (BTC) volatility is a matter of time”
Leading crypto Bitcoin (BTC) had a sluggish weekend as it barely moved after hours. US economic data led to a series of characteristic fake events throughout the week. After these, Bitcoin returned to its original position. At the time of writing, it also showed no signs of leaving its built-in range.
For Michaël van de Poppe, founder and CEO of Eight trading platform, it’s more of a question of when unpredictability will return to crypto. The popular analyst shared the following to his Twitter followers:
The majority still assumes that we will continue to go downhill with the markets. However, I think the possibility of upside momentum is increasing.
Another popular analyst, nicknamed Crypto Capo, suggested that Bitcoin could see a bear market relief rally to $21,000 before continuing on the downside. In a Twitter post before the weekly close, he explained his belief that ‘the whole market’ is about to win.
“There will be capitulation, but not yet,” analysts added to some of the ensuing discussion about the market outlook. However, Bitcoin entered the second week of the “Uptober” with a 1.5% drop from the start of the month. This is his worst performance since 2018. It’s also far behind its 2021 gains of 40%.
BTC monthly return chart / Source: CoinglassStocks overshadow the future of crypto
Looking ahead, short-term prospects for Bitcoin are not rosy, according to market participants. They see the ongoing correlation with the stock markets as proof of this. The Nasdaq Composite Index closed for the first week in fourteen years, below the 200-period moving average. As such, comparisons to the dotcom crash and the 2008 Global Financial Crisis abounded on social media.
Nicolas Merten, founder of YouTube channel DataDash, drew attention to the following in a post on the subject:
This was a pivotal moment for the two 50-80% bear markets before 2000 and 2008. Bitcoin has never experienced anything like this. So expect much more pain to come.
1-week candlestick chart with Nasdaq 100 Index 200MA / Source: TradingViewAs we reported on Kriptokoin.com, Philip Swift, the creator of LookIntoBitcoin, described 2022 as a bear market.
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