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Bitcoin has fallen back to $19,000 after strong job numbers.
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Economist Alex Kruger says bitcoin is shining a major volatility index ahead of major moves.
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Bitcoin trades on a support, and the price action will depend on the price data.
Bitcoin BTC/USD has shown a leading indicator that, historically, can predict explosive market moves. The views are according to renowned economist Alex Kruger. He has 146,200 followers on Twitter, making him one of the most followed economists. This is why his recent sentiments about bitcoin have attracted attention.
Kruger is monitoring the Bitcoin Volatility Index, or BVOL. The index uses a weighted average price to measure the volatility of bitcoin on a 30-day yearly basis. The Economist says that every time the BVOL closes below 25, there is a big move for Bitcoin. With the leading indicator shining, Kruger expects a big bitcoin move.
The remarks came after bitcoin fell back below $19,500. The decline came after the last job report showed strong payrolls. The job report called for swift Fed action, which slowed markets. Next sight will be inflation data on Thursday. Kruger says that the consumer price index will lead to the next wave of BTC volatility in either direction.
Bitcoin trades below midpoint amid weak sentiment
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Source – TradingView
On the technical side, bitcoin is trading at a psychological support near $19,000. The bulls have defended the level for a long time. However, an RSI reading below the midpoint suggests that there are more sellers.
closing thoughts
While the sentiment on the road is that bitcoin is in a compelling position purchase Zone, sentiment remains weak. Investors are also cautious about the inflation data on Thursday. Bitcoin is likely to move around the support area ahead of the CPI data. However, $19,000 remains an attractive zone, with potential upside potential.