Bitcoin Weekly Volatility Dips to 8.7%: Implications for Future Price Movements
Bitcoin’s weekly volatility has dropped to 8.7%, a low point that typically signals potential price movements. Analyst Axel Adler Jr. points out that this could lead to either a bullish or bearish shift. Current trading dynamics reflect broader market sentiments, with the price at around $97,400, up 1% in the past day.
Bitcoin’s weekly volatility has recently declined significantly, currently sitting at 8.7%. This decrease in volatility is noteworthy, as it often precedes substantial price movements for the cryptocurrency. According to CryptoQuant’s Axel Adler Jr., this indicator measures the percentage change between Bitcoin’s highest and lowest prices within the last week. The accompanying chart indicates that such low volatility levels have historically led to abrupt price shifts, though the outcome can be either bullish or bearish based on previous patterns.
The recent plunge to 8.7% represents a low point for this market cycle, with Adler Jr. noting that Bitcoin’s trading near its 111-day moving average— a critical level historically. He cautions that if market conditions continue to deteriorate, Bitcoin could potentially drop to $92,000, below this moving average.
Furthermore, another metric, Bitcoin’s Net Taker Volume, has also entered negative territory, as detailed by analyst Maartunn. This metric shows that short positions are increasingly outweighing long ones, reflecting a bearish sentiment among derivatives traders. In past consolidations, such a pattern has consistently indicated a local bottom for Bitcoin.
As of the time of writing, Bitcoin’s price stands at approximately $97,400, reflecting a modest daily increase of around 1%. The price movement has been relatively stagnant over the recent period, maintaining a cautious outlook pending any significant volatility shifts.
In summary, Bitcoin is experiencing a notable decline in its weekly volatility to 8.7%, which historically signals potential price movements—either upwards or downwards. With Bitcoin trading near critical moving averages and sentiment reflected in net taker volume, market participants remain attentive to upcoming shifts in market dynamics. The current price of Bitcoin stands at approximately $97,400, indicating a measured increase, as volatility trends continue to develop.
Original Source: bitcoinist.com
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