Bitcoin Volatility: Is accumulation and low volatility the last stages before a big market move?
The post Bitcoin Volatility: Is accumulation and low volatility the last stages before a big market move? appeared on BitcoinEthereumNews.com.
Low volatility affects Bitcoin (BTC) and some of the most high-visibility tokens. The current low volatility in Bitcoin is seen as a sign of accumulation and the precursor to a bigger market move. Bitcoin volatility is at a historic low, and it has been trending downward since 2020. Even with the two biggest bull markets, BTC prices remain more predictable. Higher liquidity and holding behaviors explain the low fluctuation. The higher price is also harder to move, indicating the market’s maturity. The BTC volatility index is down to 1.47%, sliding from 1.93% in the past 90 days. The low volatility combines with significant trading volumes, at a baseline of $26B in 24 hours. BTC trading volumes expanded since the start of 2024, boosted by new inflows of Tether (USDT). In the short term, BTC’s stagnation under the $72,000 level is causing some questioning. In June, the Bitcoin narrative is leading again, with multiple positive news and signs of whale accumulation. For that reason, the feeling of “nothing happens” may lead to a more significant price move. Read: Bitcoin ETFs Make 56% of Fidelity’s and 26% of BlackRock’s 2024 Inflows Crypto markets have also shown that significant price moves happen on a limited number of days, while periods of sideways movement now take longer. While the 2022 bear market ended at a higher baseline, it also extended for the longest at 490 days. 94 days of absolutely nothing for #Dogecoin and pretty much the whole market. Dreadful #Crypto pic.twitter.com/RSvVu6ygQ6 — Kevin (@Kev_Capital_TA) June 6, 2024 The behavior of BTC recalls previous periods of accumulation and almost no price movement. This time, on-chain activity and mining indicate a busy network. The Bitcoin DeFi summer is only a partial success. Traders also monitor possible hidden behaviors and whale accumulation before a bigger move. …
Filed under: News - @ June 7, 2024 8:14 pm