Markets

Bitcoin volatility is low, and a big move for Bitcoin is expected soon

Bitcoin market volatility has been very low lately. However, these periods of inactivity are usually followed by significant movement, but in which direction will it be?

On May 22, on-chain analytics platform Glassnode reported that volatility has been extremely low in recent weeks.

You mentioned that the seven-day price range of Bitcoin was only 3.4%. Moreover, this has held within one of the narrowest ranges over the past three years.

Great bitcoin transfer approach

She added that the pressure in the price range is similar to that in January. There was also a similar low range in July 2020, “both of which preceded large market moves.”

“This indicates that there may be high volatility on the horizon.”

Bitcoin prices fluctuated around $17,000 in December and January for weeks before surging above $23,000 over about two weeks. A similar rally happened in July 2020 when, after weeks of hovering above $9,000, BTC turned around $12,000.

Bitcoin volatility – 7-day highs and lows | glass

Furthermore, the markets have been in choppy territory on both occasions, which is where they are at the moment. BTC is still down 61% from its all-time high in November 2021 and could drop further in the next big market move.

On May 21, the trader and analyst “Rekt Capital” comment A weekly close below $27,600 “would double confirm the breakdown and could lift BTC to continue its downside trend.”

The weekly candle closed around $26,800, so the analyst can think of something. “The price needs to regain $27,600 to get a chance for the bullish momentum,” he added.

BTC Candles 1 Watt |  TradingView
BTC Candles 1 Watt | TradingView

Moreover, bitcoin mining inflows indicated an increase in selling pressure.

BTC price forecast

Bitcoin is down 1.3% on the day to trade at $26,758 at the time of writing. The asset fell to an intraday low of $26,543 in the early hours of May 22 but appears to be bouncing back.

BTC/USD 1 week - BeInCrypto
BTC/USD 1 week – BeInCrypto

BTC has been in a choppy sideways channel for the past 10 days as volatility decreases. On the downside, support can be found around $24,400 in case of a significant move. This has also been an area that analysts have been looking forward to in the series.

It represents the cost basis of the young coin offering and a psychological level to watch, Glassnode wrote earlier this month. It also marked February highs that could be revisited if the correction continues.

Disclaimer

Adhering to the Trust Project’s guidelines, BeInCrypto is committed to providing unbiased and transparent reporting. This news article aims to provide accurate and timely information. However, readers are advised to independently check the facts and consult with a professional before making any decisions based on this content.

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