A historical Bitcoin bull rally is imminent as per the latest statement issued by crypto exchange Kraken. In its latest report published for top crypto traders, the crypto exchange based in San Francisco has said that historical evidence is pointing towards an incoming Bitcoin bull rally.
Hinting at a massive upward movement in BTC/USD price in the coming days, the report shows that BTC has moved out of a bearish consolidation phase that began in late 2017. Citing historical evidence, the Kraken report mentions that the latest breakout marks the start of a significant Bitcoin bull rally that is well supported by macro factors.
Kraken is confident of a upcoming Bitcoin bull rally
The crypto exchange has published its latest report after Bitcoin price successfully took out $10,500 level and crossed $12,000 briefly. Despite some profit booking, the BTC/USD pair has stayed above the support threshold and is flirting with upper resistance levels.
A series of higher highs will work in favor of the bulls. The report also takes note of the fact that the annual volatility of Bitcoin has come down by 23 percent in late July. This phenomenon is called ‘suppressed pocket,’ and it generally precedes an upward movement. Technically, the Kraken report is based on this phenomenon to predict an incoming Bitcoin bull rally.
Historical evidence suggests that a bull rally is due
Kraken further mentions that the jump in BTC/USD volatility in late July represents the start of a new uptrend. Furthermore, the exchange predicts that BTC volatility can jump to cross 100% as the cryptocurrency would appreciate by 50 percent to 200 percent in the near future.
Historically, the last 12 instances observed show that whenever volatility has dropped in the range of 15-30 percent, it tends to climb in the next few months and usually max outs at 140%. In most of these events, a Bitcoin bull rally was observed, taking the price up by 196 percent in some cases.