Bitcoin '6-8 weeks' from breakout as Hang Seng echoes Lehman Brothers dip

Bitcoin (BTC) waited for cues astatine the Oct. 24 Wall Street unfastened arsenic expectations of a breakout ran high.

BTC/USD 1-hour candle illustration (Bitstamp). Source: TradingView

Hang Seng drops astir since 2008

Data from Cointelegraph Markets Pro and TradingView tracked a mundane trading time for BTC/USD aft the brace deed play highs of $19,700 overnight.

Despite what Michaël van de Poppe, CEO and laminitis of trading steadfast Eight, called “way worse than expected” manufacturing information from the United States, Bitcoin suffered from declining trajectory connected the day.

This led on-chain analytics assets Material Indicators to fishy that absorption would stay successful place.

“Sunday BTC failed each attempts to reclaim the 2017 Top,” it summarized astir the latest 24 hours’ terms enactment arsenic per its proprietary trading indicators.

“The alteration successful the trajectory of Trend Precognition's A1 Slope Line aft the D and W adjacent indicates a nonaccomplishment of momentum. Price is presently pinned betwixt the 50-Day MA and the inclination enactment awaiting the TradFi open.”

Van de Poppe meantime put the merchantability levels to bushed astatine $19,600 and $20,700, adding that the U.S. dollar and U.S. enslaved yields were “showing immoderate flimsy weakness.”

“Upwards momentum is fading connected enslaved yields,” fashionable trading relationship Game of Trades continued.

“When this past happened, the markets went connected a large run.”

It was nevertheless macro markets offering clearer signs of volatility to travel connected the day, specifically successful Asia, wherever the Hong Kong Hang Seng saw its biggest regular driblet since the Lehman Brothers implosion successful 2008.

Hang Seng Index 1-day candle chart. Source: TradingView

Game of Trades likewise considered the S&P 500 arsenic a imaginable root of a “massive move” with volatility increasing.

S&P 500 volatility annotated chart. Source: Game of Trades/ Twitter

"Big expansive move" whitethorn beryllium months disconnected for BTC

For Bitcoin, volatility could beryllium a agelong clip coming, arsenic a classical indicator delivers signals seen lone a fistful of times before.

Related: Least volatile ‘Uptober’ ever — 5 things to cognize successful Bitcoin this week

As noted by Filbfilb, co-founder of trading suite Decentrader, Bitcoin’s Bollinger Bands proceed to declaration connected play timeframes, reaching uncommon levels.

“The result of each illustration is evidently a large expansive move,” helium told Twitter followers connected the day.

“The comic portion is that successful each of the examples, BTC spent 6-8 weeks tightening further from the width level we are present at, earlier a large expansive move, truthful I'm acrophobic there's a bully accidental this happening winds up further.”

BTC/USD comparative annotated charts. Source: Filbfilb/ Twitter

Whether up oregon down, Bitcoin’s existent expanding correlation with golden was thing to instrumentality enactment of, Charles Edwards, laminitis of plus manager Capriole, added.

“Bitcoin bottoms often align with precocious correlation to Gold. We person that today,” helium declared alongside a comparative illustration of erstwhile specified periods.

“It is overmuch amended erstwhile Bitcoin is correlated to Gold. Unshackled.”

BTC/USD vs. golden correlation annotated chart. Source: Charles Edwards/ Twitter

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.