volatility at half mast, an explosive movement to come?

The price of Bitcoin (BTC) has been living for many weeks around 20,000 dollars. But would he finally get ready to get out of his range? It is possible, if we are to believe a particularly low volatility, which is often the harbinger of an explosive movement.

Bitcoin volatility is at an all-time low

Historically, Bitcoin price has not stood still for long periods of time. When price volatility reaches particularly low levels, the biggest cryptocurrency often prepares for the explosion… Up and down.

And this is the case this week: over the last seven days, the price of BTC has barely moved, with an increase of +0.8%. Same scenario over the last 30 days, where the largest cryptocurrency loses -1.2%.

The price of Bitcoin has been moving in a particularly tight range for a month

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Violent price movements ahead?

According to Professor Chaîne, an analyst for Cryptoast, this is accompanied by other warning signs :

“Realized volatility and option market volatility are at historic lows, and near-term on-chain spending behavior is nearing a pivotal point. »

As seen in the following data, collected by Arcane Research, Bitcoin’s volatility is at a two-year low:

Bitcoin volatility

Bitcoin’s volatility is at a two-year low

This environment is not trivial, it could announce strong price movements for bitcoinaccording to Prof Chain:

“Previous instances of this set of conditions being present have led to violent price movements in one direction or the other. »

The price of Bitcoin could therefore wake up in the short term. But in what sense? That’s the question. the symbolic threshold of 20,000 dollars has been both a goal and a barrier for many weeks. All eyes will therefore be on this key stage.

👉 To go further – How to buy Bitcoin in 2022?

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Sources: TradingView, BTC/USDT, Arcane Research

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