Halving cycle creator and crypto analyst CryptoCon announced that Bitcoin is moving towards cycle-top volatility. The Two-Week Relative Volatility Index (RVI), associated historically with cycle peaks or the path to them, has reached unprecedented high levels. The burning question: Is there a new all-time high (ATH) on the horizon? Let’s look at the analyst’s evaluations.
Decoding the Unusual in Bitcoin BTC: Mid-Cycle Power Move
According to the analyst, this is not a typical mid-cycle fluctuation. The crypto world is witnessing an extraordinary event, a strong move usually reserved for a cycle’s peak. Contrary to the belief that “this time it’s different,” the analyst emphasizes that historical data does not support such an anomaly. The narrative emerges against the backdrop of a robust horizontal price move for 8 months in 2023, and this stage has paved the way for the current momentum.
According to the analyst, the last fluctuation seems like the release of a spiral arc. After months of sideways movement, the crypto market is experiencing the peak of accumulated momentum. However, the analyst warns to be cautious as sharp stops are expected to appear in the near future, especially in the range of $47,000 to $49,000.
According to the analyst, the psychological impact of past events, such as the recession fear at $25,000 in BTC, continues to affect market sentiment. Many people predict a return to the low levels at $15,500 or at least a drop to the range of $21,000 to $23,000.
Mass Psychology in Crypto Trends
According to the analyst, the recurring theme in the crypto world is mass psychology, and models often emerge in repeating cycles. Fear-driven narratives that engulfed the market at $25,000 led to expectations of a return to previous low levels. However, the ongoing increase challenged these expectations, calling investors to reevaluate their positions.
As Bitcoin’s volatility approaches the top levels of the cycle, the crypto community is preparing for potential twists and turns in the market narrative. Understanding market signals is key in the constantly evolving world of cryptocurrency. As Bitcoin navigates uncharted territories, the importance of historical models cannot be overstated.
The Two-Week RVI mentioned by the analyst gives warnings reminiscent of cycle peaks, while the unique conditions surrounding this fluctuation challenge traditional expectations.
