Recently, the parent cryptocurrency has shown a significantly low level of volatility. This state of affairs contrasts with its generally volatile nature relative to other assets. However, some traders and analysts see this low volatility as a pre-step for a possible explosive rise in Bitcoin (BTC).
Bitcoin (BTC) Volatility Level Reaches ATL
After recording remarkable growth at the start of the year, the price of bitcoin is currently experiencing very low volatility. It has been holding within a narrow range between $31,862 and $28,477 since July. This “annoying” move 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 an extreme compression of its volatility. A graph representing the actual annual volatility shows that the volatility levels are currently very low. Monthly volatility is currently at 22.9%, while annual volatility is at 49.1%.
All this is happening as bitcoin (BTC) shows a positive performance of +76% since the beginning of the year. According to some analysts, this low volatility suggests the possibility of explosive upside movements.
Towards an imminent outbreak?
Generally, low volatility suggests a significant move is approaching. According to crypto analyst Sunny Decree on Twitter, a “breakout” could occur soon given the currently low level of volatility.
Another analyst, CryptoCon, followed by 28.3k subscribers, agrees. According to him, periods of low annual bitcoin (BTC) volatility have often been followed by a rise in the price of the asset.
On the other hand, Titan of Crypto anticipates price takeoff. His chart effectively shows that a second phase of extreme low volatility usually precedes an explosive rise.
If these various bullish predictions materialize, the current bearish phase of bitcoin (BTC) could present an investment opportunity. In this case, the support at $28,331 represents a potentially attractive buying zone.
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