Bitcoin [BTC] might be heading for a repeat of its late 2018 selling, data warns as realized volatility reaches almost 3-year highs.
While uploading new charts earlier on 6th July, on-chain analyst Skew drew concerning comparisons to Bitcoin in its 2018 bearish market trend.
Bitcoin & Excessive Sell-Off
Analyzing volatility, Skew outlined that the last time the metric hit 20%, a mass capitulation event followed, within which BTC/USD hit $3,100 USD.
“Last time we reached that level, we had the great sell-off of Nov 2018 shortly after,” analysts added.
Realized volatility refers to historical volatility measurements, with 20% on the 10-day reading marking a 33-month low.
As reported last week, the shortage of volatility has come hand in hand with declining volumes in Bitcoin [BTC], that analysts already believe will soon spark a “big move” up or down.
BTC/USD is repeatedly testing for $9k support now, while attention is speculating in defending $8,600 to avoid a much greater fall.
Bitcoin & Gold
While Bitcoin looks shaky, the other is true for gold, with commentators eagerly anticipating a bullish breakout.
With stocks booming but uncertainty remaining about long-term sustainability, gold is challenging its highs from 2011.
For Bitcoin skeptic gold bug Peter Schiff, the investment choice was obvious once again as the week started.
“Gold seems to be chipping away at resistance slightly below $1,800 while Bitcoin is simultaneously chipping away at support just above $9k,” he added as a part of a Twitter survey recently on Sunday.
Respondents seemed to disagree, with almost 50% of the 9,800 participants forecasting both gold and Bitcoin to continue climbing.