— CryptoCon (@CryptoCon_) August 6, 2023
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Bitcoin (BTC): Volatility at an ATL, price explosion in sight? August 8 analysis
Wed 09 Aug 2023 ▪
3
min read ▪ by
Invest
▪
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Recently, the leading cryptocurrency has displayed a considerably low level of volatility. This contrasts with its generally volatile nature relative to other assets. However, some traders and analysts see this low volatility as a precursor to a possible explosive rise in Bitcoin (BTC).
![A bitcoin (BTC) with a trading chart in the background](https://www.cointribune.com/app/uploads/2023/07/20241082_6257814-1024x682.jpg)
Bitcoin (BTC) volatility reaches ATL level
After recording remarkable growth at the start of the year, the bitcoin price is currently experiencing very low volatility. It has remained within a narrow range between $31,862 and $28,477 since July. This “boring” movement comes as the crypto community awaits the next Halving in 2024.
According to Glassnode, a company specializing in on-chain data analysis, the bitcoin (BTC) market is facing extreme volatility compression. A chart representing effective annual volatility shows that volatility levels are currently very low. Monthly volatility is currently 22.9%, while annual volatility is 49.1%.
All this is happening at a time when bitcoin (BTC) has posted a positive performance of +76% since the start of the year. According to some analysts, this low volatility points to the possibility of explosive upward movements.
Towards an imminent surge?
As a general rule, low volatility suggests the approach of a significant move. According to crypto analyst Sunny Decree on Twitter, a breakout could be imminent given the current low level of volatility.
Another analyst, CryptoCon, followed by 28.3k subscribers, agrees. According to him, periods of low annual volatility in bitcoin (BTC) have often been followed by a rise in the asset’s price.
Titan of Crypto, on the other hand, anticipates the price taking off. Its chart shows that a second phase of extreme low volatility generally precedes an explosive rise.
If these various bullish predictions come to fruition, bitcoin’s (BTC) current downtrend could represent an investment opportunity. In this case, support at $28331 represents a potentially interesting buying zone.
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Je suis passionnée par les cryptomonnaies, un monde que j'ai découvert il y a peine 3 ans. Mon seul but est de vous informer de cet univers incroyable à travers mes articles.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.