Analysts Believe Bitcoin's Extremely Low Volatility Levels and Stability is Huge Plus for BTC's Future Run

    A whole lot of economists tend to agree on the fact that Bitcoin is one of the world’s all -time fastest rising financial assets. This is partly due to its speculative nature as well as the currency’s intrinsic design— which allows the flagship cryptocoin to be deployed within a host of different industrial domains.

    With that being said, it should also be pointed out that as a result of its speculative nature, the digital offering is often faced with a high degree of volatility. For example, over the course of the past 14 months or so, Bitcoin’s value has dropped by more than 80%.

    However, it now appears as though BTC is stuck in a tight trading range, which when compared to its historical data, shows us that the currency might well be on its way to experiencing its lowest volatility rates in quite some time.

    More on the Matter

    As things stand, a lot of crypto proponents are divided as to when the current bear market will finally bottom out. In this regard, many of our readers might be well aware that ever since BTC dropped from its ATH of $20k, it has been hovering around its lower overhead resistance level of around $4,000.

    Additionally, since the start of this month, the premier crypto asset has been trading within a narrow exchange range of just 7.8%.

    While for most other financial commodities, such figures might be quite common, this kind of stability for Bitcoin is usually quite hard to come by.

    Lastly, the aforementioned 7.8% trading range could soon break Bitcoin’s record for the tightest trading range in its recorded history.

    Other Important Takeaways

    In a recent interview with Murad Mahmudov, the well known crypto analyst/trader went on record to state that BTC’s existing volatility rates were neither positive nor overtly negative for the currency. He then went on to add:

    “Low-volatility periods in BTC have always preceded prolonged bull runs, especially after capitulation moments of high momentum as seen in November and December.”

    • The last time Bitcoin witnessed an extended period of low volatility was during the bear market of 2014— a time when BTC crashed from a price point of around $1k to $200.
    • The aforementioned drop in value is quite comparable to the losses witnessed by the premier alt-asset all through last year.

    Final Take

    In rounding off this piece, it should be made clear that in order for Bitcoin to become a global currency, it needs to experience more long-term stability.

    Only time will now tell how the future of this premier asset plays out from here on end.

    Bitcoin, BCH, Ethereum, and Litecoin Price Prediction: Today's Top Crypto Forecast Analysis

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    Shiraz J
    Shiraz is a multi-year cryptocurrency analyst and blockchain journalist residing in Melbourne, Australia. When he is not writing about the bitcoin ecosystem, he enjoys the art of meditation, playing the blues and traveling the world.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


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