Earlier today, Cointelegraph reported that "the price of Bitcoin (BTC) was the strongest second quarter performance in history" despite a surprising crash to $ 3,750 on March 13. Skew data also shows that Bitcoin currently has a quarter-to-date return of 42.39% and the digital asset remains the best performer for 2020 with a return of 27.31%.
The macro-annual object has yielded yield% so far. Source: crooked
Data from on-chain analytics provider glassnode also found that since the Black Thursday crash, the total number of Bitcoin whales has risen above the peak of 2017 to 1,800 in the past 3 months.
Another positive signal from investor sentiment towards Bitcoin comes from a recent survey conducted by crypto custodian Bitcoin IRA, which shows that 43% of the platform's customers expect the Bitcoin price to surpass $ 15,000 by the end of 2020.
After surveying 300 clients, the custodian found that 57% of participants confirmed that they are buying and holding crypto assets as a long-term investment.
Each of these data points underscores the growing bullish sentiment around the Bitcoin price, despite the short-term price action showing the highest-listed crypto asset trading in a neutral zone.
BTC USDT daily chart. Source: TradingView
At the time of writing, the price remains squeezed between 20-MA and the midline of a descending channel. The $ 9,200- $ 9,550 resistance cluster remains a hurdle the digital asset must overcome.
As discussed previously by Cointelegraph Markets, the 4-hour and daily time frame shows Bollinger Bands showing that consolidation is taking place and that Bitcoin forms higher lows on the daily time frame, despite trading volume being relatively flat.
In a recent Bitcoin market update for customers, Delphi Digital pointed out that "Bitcoin had been trading in a relatively tight range for the past month, spending the vast majority of the time between the low $ 9,000 and $ 10,000."
BTC-USD versus realized volatility over 30 days. Source: Delphi Digital, Bloomberg
The research group also pointed out that "BTC volatility has fallen to its lowest level of the year for 30 days, historically preceding significant price movements when volume returned."
BTC-USD versus intraday price range. Source: Delphi Digital, Coinbase, Gemini
Delphi Digital also noted that as the Bitcoin price consolidates between a major overhead resistance and a critical underlying support zone, intraday volatility decreased, suggesting a strong price shift is imminent.
Since the coronavirus pandemic led to a sharp correction in stock markets in early March 2020, Bitcoin's price action has followed that of traditional markets. The strong rebound in the BTC price from $ 3,750 to $ 10,350 occurred along with the V-shaped recovery currently seen in the S&P 500 and the Dow.
Currently, crypto investors are very interested in whether the short-term correlation between the asset classes will persist or whether a decoupling will occur.
Commenting privately with Cointelegraph, Delphi Digital market analyst Kevin Kelly said:
Historically, when the S&P 500 gains 15% or more in a calendar quarter, in all cases (9 before) in the past 80 years, the index also closed positively in the following quarter. Now I would say that a positive third quarter for the SPX is far from guaranteed, but nevertheless a remarkable stat, especially if you expect BTC to continue trading in line with riskier asset classes in the short term. ”
Regarding the market volatility within stock markets and its impact on Bitcoin price action, Kelly explained that:
“If stock market volatility remains high (or above historical average), I would expect the correlation between stocks and BTC to remain relatively high. Historically, major spikes in the VIX, for example, have coincided with significant sell-off in BTC, and so if we were to see another violent leg lower in stocks, I would expect BTC to suffer in the short term as well. ”
It is not without reason that stocks and crypto investors remain concerned that markets will suffer from the drastic increase in COVID-19 infections in a number of US states, the recent European Union ban on Americans traveling to EU countries and the domino effect of his will on the US airline and the global tourism industry.
According to Kelly:
“If you think about it, the main short-term catalysts for both are quite similar, i.e. historical policy responses to a major economic collapse. Currency evaluation can even give shares an offer if the demand for scarcity and real assets increases. ”
The general view among analysts is that the Bitcoin price could revise recent lows in the coming weeks if the USD 8,800 support collapses. Despite this slight short-term bearish bias, BTC's market structure and bullish investor sentiment suggest that digital assets remain well positioned for further gains in the third quarter.