As noted in Coin Rivet’s daily technical analysis, Bitcoin is enjoying a period of relative calm following the turbulent sell-off in March that saw it fall to as low as $4,000.
It continues to establish a level of support beneath the $10,000 mark, which can be considered bullish considering it has recovered by more than 100% in three months.
According to Gavin Smith, CEO of cryptocurrency consortium Panxora, the lack of recent volatility is “unsurprising”.
He added: “Since Black Thursday on March 12th, Bitcoin seems to have reached relative stability. That said, the experienced traders will know that pro-longed periods of calm have often signified a dramatic price swing on the horizon – in either direction.
“While Bitcoin is set for a multi-year upwards trend following the Halving in May, the climb won’t be plain sailing. Therefore, investors should proceed with caution as the fall could be steep.”
At the time of writing Bitcoin is trading at $9,735 one of its most stable weeks of the year as it struggles to make a major move in either direction.
However, as noted by Gavin Smith, the period of stability will likely come before a moment of extreme volatility, which could take out the $10,500 level of resistance on the fourth attempt as the impact of reduced supply from the halving begins to take hold.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.