Bitcoin Price Volatility Shows Signs of a Maturing Crypto Market as Bull Run Rally Looks Inevitable
Bitcoin Market Showing Signs of Maturity as Volatility Reaches 17 Month Low
Bitcoin has always been infamous for its volitility but over the past mnth, it has surprised everyone. Not only because this phenomenon was unusual, but also the reason behind it, which some are calling it as maturity while others are labeling it as consolidation before the bull run. In either case, these signs, in the long run, are positive for bitcoin.
Volatility At 17 Month Low
According to Mike McGlone, Bloomberg Intelligence commodity strategist, the decline in the volatility of major cryptocurrencies is a sign that the cryptocurrency market is maturing. He stated that the cryptocurrency market is beginning to establish itself, finding comfort in a lower price range.
Given the stability in the price of Bitcoin, it is evident BTC has found its bottom. Even if the volume of the cryptocurrency market falls below the $10 billion mark, he explained that it is difficult to see BTC dropping below ots current level. The market has started to demonstrate seller fatigue, and the bears of the market are no longer willing to sell at a low price of mid-$6,000.
The Bitvol Index, that measures the volatility of bitcoin is also shown surprising stability over the last 30 days. According to this index, during that period, Bitcoin’s price experienced a variation of 1.57% compared to its usual range of between 3% and 7%.
The majority of technical analysts and prominent traders in the cryptocurrency sector are anticipating a large move on either the upside or downside. Currently, due to the relatively low volume of the crypto exchange market, it is not certain that the next major movement of Bitcoin will be breakout of two resistance levels at $6,800 and $7,000.
Hence, in the days to come, it is possible that BTC experiences a substantial spike in its volume and breakout of the $6,800 level or sees another shakeout before initiating a meaningful short-term rally.
Maturity is definitely creeping into the crypto sphere as large corporations, banks and regulators are all watching it which has now bought down the malicious activities. Also a lot of people, now, have increased understanding of how bitcoin works and are bringing it to use in the best possible way, giving bitcoin a shape of actual currency than just a speculative money-making tool.