Bitcoin Price May Surge Up to 27.9% as Volatility Squeeze Continues

A recent analysis of historical data by DeFi researcher Sherlock suggests that Bitcoin may be poised for a significant price movement in the coming weeks.

The study found that the current volatility squeeze, which began on July 16th when Bitcoin was at $63,830, has resulted in strong price movements in past instances where the 14-day trading range narrowed to less than 99.5% of historical data.

According to Sherlock's research, there have been 19 independent periods in the past where this condition was met, and in each case, the Bitcoin price moved by at least 12.5% in the following 45 days.

The median maximum price movement seen in these past examples was 21.5%, while the average maximum movement was 27.9%. Sherlock's data suggests that if historical trends repeat, Bitcoin could reach either $71,809 or $55,851 by August 30th, representing a move of approximately 12.5%.

However, the researcher cautioned that the data does not provide a clear advantage in predicting the direction of the movement, as the initial breakout was upward in 9 instances and downward in 10.