The Bull Market Springboard

Over the last few weeks, we've been making the case that Bitcoin is likely to resolve to the upside and head toward our first target of 85,000.

In a note we published last Monday, we outlined a variety of developments taking place that's been supporting our macro bullish thesis. Since then, Bitcoin has continued to consolidate following its run-up after achieving all-time highs, and we haven't seen any dramatic price action in either direction.

So, in today's post, we'll be revisiting some of the data points we're heavily weighing towards our approach in the coming weeks.

Price Stability at a Local Maximum

In recent weeks, we've been discussing the compression of volatility in a lot of crypto assets, primarily Bitcoin.

There are a number of ways we can go about quantifying volatility, but we opt for a simple 20-day width of the Bollinger bands. For those unfamiliar, these are calculated by taking two standard deviations from the 20-day moving average. As the width between the bands gets increasingly compressed, it points to tightening volatility, which tends to proceed with aggressive moves.

This is still in play with Bitcoin deep in the volatility compression zone.