The price of Bitcoin (BTC) has been hovering around the $20,000 mark for many weeks. But is it finally about to break out of its range? It is possible, if we believe a particularly low volatility, which is often a harbinger of an explosive movement.
Bitcoin’s volatility is at an all-time low
Historically, the Bitcoin price does not stay still for long periods of time. When price volatility reaches particularly low levels, the largest cryptocurrency often prepares for the explosion… Both up and down.
And that’s the case this week: over the last seven days, the BTC price has hardly moved, with a +0.8% rise. Same scenario over the last 30 days, where the largest cryptocurrency loses -1.2%.
Bitcoin’s price has been in a particularly tight range for the past month
Violent price movements ahead
According to Professor Chaîne, an analyst for Cryptoast, this is accompanied by other warning signs:
“Realised and options market volatility are at historic lows, and short-term on-chain spending behaviour is approaching a decisive pivot. “
As seen in the following data, collected by Arcane Research, Bitcoin’s volatility is at a two-year low:
Bitcoin’s volatility is at a two-year low
This is not a benign environment, it could herald strong price movements for Bitcoin, according to Prof. Chain:
“Previous cases where this set of conditions were present have led to violent price movements, in either direction. “
So Bitcoin’s price could wake up in the short term. But in which direction? That is the question. The symbolic $20,000 threshold has been both a target and a barrier for many weeks. All eyes will be on this key level
