Bitcoin has bounced back above $30k after a week of moving sideways, thanks to traders’ capitulation during the past week of price declines. According to Santiment’s recent insights, the king coin’s trading volume has picked up steam to reach the highest level in six weeks.
BTC has breached back above $30k once again, with assistance from the many traders who capitulated during the past week of price declines. Volume is rising to kick off August, & this psychological resistance cross may shift sentiment positively.
The most popular cryptocurrency in the world also had price volatility at record lows, ranking second-lowest in yearly volatility ever. Many market participants in the digital asset world have observed this trend, including Crypto Con, who noted that in the past, low volatility has been a bullish indicator for Bitcoin.
Besides being a precursor to a price uptrend, low volatility is also a sign of stability and maturity for a cryptocurrency. It implies that less speculation is driving up and down price movements and that the market is becoming more efficient. For long-term investors, this may be encouraging news since it shows that cryptocurrencies are becoming more trustworthy as a store of wealth.
Most importantly, Bitcoin has performed well after periods of low volatility if we look at historical trends. Every time BTC’s volatility has dropped to similar levels in the past, it was followed by a significant price increase. This suggests that, while the current low volatility may be frustrating for traders looking for quick profits, it could be a positive sign for long-term investors.
Bitcoin Secures Bullish Momentum
Crypto Twitter was mired in doomsday predictions after the token was trapped between $31,500 and $29,500 for more than a month now. Many attributed BTC’s inability to break below the price range to a lack of positive stimuli. But the latest edition of Bitfinex Alpha said that we could still be in the early part of a bull market.
The research claimed that despite the protracted fall, Bitcoin’s market price is higher than its realized price of $20,361 at the moment. According to Bitfinex, this shows that market participants are making money and are therefore likely to keep their positions since overall, longer-term holders have been making money since the year’s beginning.