Still, a BTC breakout above $40,000 or breakdown below $30,000 could be a catalyst for a surge in trading activity.
“Since the early November peak, there have been four marked, step-like drops in the crypto market,” FundStrat, a global research firm, wrote in a Wednesday briefing. “After each drop there has been a recovery averaging 8.9% leading into the next drop. A noticeable difference between the current recovery and the previous ones is the volatility,” FundStrat wrote.
The firm noted that during the past three price recoveries bitcoin had an average true range (ATR, a volatility indicator) of 151, but the current recovery’s ART is only 109.
