Kraken Predicts Massive Bitcoin Price Rally Of 200%: Analysis
Kraken predicts an imminent Bitcoin price rally of more than 200% after the record strength on the market in the upcoming weeks and months as we are reading more in the upcoming Bitcoin news today.
After recording massive strength in the BTC market at the end of the previous month, Kraken predicts that Bitcoin will see more price gain of about 200% over the upcoming weeks and months. Major United States-based exchange released a report predicting that Bitcoin will rally by between 50% and 200% in the upcoming few months. The report noted that Bitcoin posted a 21-month low for the volatility at the end of July of 23% and stated that Bitcoin’s 12 historic volatility lows have been followed by a rally of about 140% on average.
As August is usually the most volatile month for the BTC price, Kraken predicts that upward momentum produced by Bitcoin at the end of the past month will continue for a few months that are upcoming. The exchange emphasized that the latest rally resulted in the second-strongest July for the BTC price performance since 2011 noting that the past month was usually the weakest month for the number one cryptocurrency. The 14% jump between July 27-31, drove the overall performance to a 24% position in the market for another momentum according to Kraken.
Before this move happens, in July there was a report describing a “suppressed pocket” of weak volatility and 10 of the 12 past instances of BTC entering the suppressed pocket which was followed by gains surpassing 196%. Kraken estimated that 44% of the total trade volume transpired over the final week of the month. The report also noted that Bitcoin’s 30-day correlation with gold jumped to a one-year high of 0.93 at the end of July.
The spike came shortly after the monthly correlation dropping to a 10-month low of -0.66 contradicting the predictions that bitcoin and gold will emerge as popular “safe-haven” assets and move-in over the entire COVID-19 pandemic and recession. Kraken also wanted to strengthen its ties to Switzerland, describing the country as a “kindred spirit” because of its positive approach to regulating and incubating growth within the cryptocurrency sector. In order to build a foundation within this country, the crypto exchange Kraken recently started offering support of the Swiss Franc (CHF) while also joining the Crypto Valley Association.