Yesterday we wrote about the low volatility after Mt. Gox’s accounts were seized. The following graph from that article illustrates how we haven’t seen volatility this low on Mt. Gox since December of 2012. Looking back to that December low, there was a clear consolidation phase before the major run-up. Notably, the broader consolidation at that time lasted several months. The same pattern occurred in mid-March 2013 around $45, with a tempered ramp before a consolidation, followed by an upward inflection in prices. Markets frequently see periods of low volatility and consolidation around a price level before making large moves …
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