BTC to GBP Searches For Direction As Focus Shifts To Brexit and Halving

bitcoin price BTCUSD
bitcoin BTCUSD

The BTC to GBP pair was little changed today as the markets focused on the ongoing Brexit meetings. Many Bitcoin enthusiasts are also counting days for the upcoming halving.

Brexit Meetings

Today, representatives from the UK and the European Union started a virtual meeting as they deliberate on the future relationship. The virtual meeting will take place from Today until Friday and the agenda is on services and goods trade. They will also discuss several issues about legal issues because the UK has said that it will exit the European criminal justice system when the transition period ends.

The stakes in these virtual meetings are high because the two sides want a deal in their favour. For example, the UK does not want to operate under European rules and regulations. On the other hand, the EU does not want UK firms to have a competitive advantage in the future.

As a result of these talks, the sterling was unchanged against Bitcoin and other fiat currencies. For example, it dropped by just 30 basis points against the USD and by just 35 basis points against the euro.

Bitcoin Volatility Falls

Similarly, Bitcoin was little changed against the US dollar, euro and sterling. Indeed, its volatility, when measured by Bollinger Bands and Average True Range (ATR) has declined to the lowest level in months. This is shown on the chart below.

The decline in volatility is that investors are continuing to count days to the upcoming halving season. According to Bitcoin Block Halving, the process has about 22 days to go. In the previous two halving periods, the price of Bitcoin has shown some increased volatility before the halving date.

Another reason why the BTCGBP pair has not moved a lot is that there have been no major cryptocurrency news. In the past, news like regulations and hackings has led to major swings.

BTCGBP Volatility Falls

BTCGBP Volatility

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Bitcoin Price Technical Outlook

As with the daily chart shown above, the three-hour chart shows that the BTC to GBP pair has been moving in a sideways direction. This is further evidenced by the fact that the pair is trading along the 100-day and 50-day exponential moving averages.

This has seen it establish several support and resistance channels. Therefore, there is a possibility that the trend will continue moving lower and possibly test the important support of 5,322.

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