{"id":482655,"date":"2022-02-01T23:57:10","date_gmt":"2022-02-01T23:57:10","guid":{"rendered":"https:\/\/wncen.com\/?p=482655"},"modified":"2024-06-11T14:11:07","modified_gmt":"2024-06-11T14:11:07","slug":"bitcoin-volatility-drops-to-15-month-low-what-this-could-mean","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/bitcoin-volatility-drops-to-15-month-low-what-this-could-mean\/","title":{"rendered":"Bitcoin Volatility Drops To 15 Month Low; What This Could Mean"},"content":{"rendered":"
Is this the calm before the storm? Bitcoin volatility is seldom this steady. After a tumultuous downturn that had the whole market upside down, bitcoin\u2019s fiat price is relatively flat. Everyone can breathe and rest, for a while at least. What does this mean and how long will it last, though? That\u2019s what we\u2019re here to explore.\u00a0<\/span><\/p>\n Related Reading | Dwindling Bitcoin Volatility Could Lead To Decisive Move<\/a><\/strong><\/em><\/p>\n It\u2019s no secret that the market was expecting a hike in the interest rates, and thus people were selling risky assets. However, the powers that be postponed the increase, and, well, the market calmed down. During this downturn, though, Bitcoin proved once again that the market considers it the least risky asset in the cryptocurrency space. Everyone bled, but Bitcoin considerably less so.<\/span><\/p>\n In any case, back to volatility, Arcane Research\u2019s <\/span>The Weekly Update<\/span><\/a> has the scoop:\u00a0<\/span><\/p>\n \u201cBitcoin\u2019s 7-day volatility is now at the lowest level since November 2020. Together with the trading volume, the volatility exploded last week when bitcoin dropped below $40,000. After bottoming at $33,500, the bitcoin price has been slowly grinding upwards, and it looks like the market has released sufficient pressure for now. Still, we might see new volatility peaks soon as bitcoin trades closer to several key resistance and support levels that might be catalysts for increased volatility.\u201d<\/span><\/p><\/blockquote>\n The pressure is off, but, the steadiness might not last. If there\u2019s one thing we can count on in regards to bitcoin is this: volatility will return sooner than later, for better or worst.\u00a0<\/span><\/p>\n <\/p>\n Bitcoin \u201chas been slowly grinding upwards,\u201d and it\u2019s getting close to that magical number 40. Again, The Weekly Update:<\/span><\/p>\n \u201c$40,000 is a key resistance level. With BTC\u2019s slow grind upwards lately, we could see BTC testing this resistance level shortly. A breakthrough would be a relief for the bulls and could signal a trend reversal.\u201d<\/span><\/p><\/blockquote>\n On the other hand, if things go south and the market starts bleeding again, there\u2019s another number that we have to be aware of:<\/span><\/p>\n \u201cTowards the downside, $32,500 acted as support during the initial sell-off, but $29,000 remains as the most critical support level. A breakout below $29,000 would be unsettling, which could cause havoc in the market.\u201d<\/span><\/p><\/blockquote>\n If Bitcoin touches 40 or 29, the boat might start to rock. Fasten your seatbelts and be sure to wear a life jacket.<\/span><\/p>\n <\/p>\n The short answer is supply and demand. However, since the Bitcoin economy is still small compared to the world\u2019s, several factors can upset or propel the price. From any kind of news to influencers\u2019 opinions to regulation talk or concrete action to whales dumping on the market to interest rates hike rumors. Anything. Also, take this <\/span>Investopedia<\/span><\/a> insight into account:<\/span><\/p>\n \u201cBitcoin has only been around for a short time\u2014it is still in the price discovery phase. This means that prices will continue to change as investors, users, and governments work through the initial growing pains and concerns until prices stabilize\u2014if a stable point can be reached.\u201d<\/span><\/p><\/blockquote>\n Related Reading | This Bitcoin Volatility Index Pattern Suggests A Short Squeeze May Be Near<\/a><\/strong><\/em><\/p>\n Yes, Bitcoin is the largest cryptocurrency by far and <\/span>Fidelity thinks<\/span><\/a> it \u201cshould be considered first and separate from all other digital assets that have come after it.\u201d However, the asset is still a wild teenager. Expect volatility and learn how to deal with it. It\u2019s going to be a bumpy ride.<\/span><\/p>\n Is this the calm before the storm? Bitcoin volatility is seldom this steady. After a tumultuous downturn that had the whole market upside down, bitcoin\u2019s fiat price is relatively flat. Everyone can breathe and rest, for a while at least. What does this mean and how long will it last, though? That\u2019s what we\u2019re here to explore.\u00a0 Related Reading | Dwindling Bitcoin Volatility Could Lead To Decisive Move It\u2019s no secret that the market was expecting a hike in the interest rates, and thus people were selling risky assets. However, the powers that be postponed the increase, and, well, the market calmed down. During this downturn, though, Bitcoin proved once again that the market considers it the least risky asset in the cryptocurrency space. Everyone bled, but Bitcoin considerably less so. In any case, back to volatility, Arcane Research\u2019s The Weekly Update has the scoop:\u00a0 \u201cBitcoin\u2019s 7-day volatility is now at the lowest level since November 2020. Together with the trading volume, the volatility exploded last week when bitcoin dropped below $40,000. After bottoming at $33,500, the bitcoin price has been slowly grinding upwards, and it looks like the market has released sufficient pressure for now. Still, we might see new volatility peaks soon as bitcoin trades closer to several key resistance and support levels that might be catalysts for increased volatility.\u201d The pressure is off, but, the steadiness might not last. If there\u2019s one thing we can count on in regards to bitcoin is this: volatility will return sooner than later, for better or worst.\u00a0 BTC\/ USD Volatility | Source: Arcane Research\u2019s The Weekly Update What Are The Resistance And Support Levels? Bitcoin \u201chas been slowly grinding upwards,\u201d and it\u2019s getting close to that magical number 40. Again, The Weekly Update: \u201c$40,000 is a key resistance level. With BTC\u2019s slow grind upwards lately, we could see BTC testing this resistance level shortly. A breakthrough would be a relief for the bulls and could signal a trend reversal.\u201d On the other hand, if things go south and the market starts bleeding again, there\u2019s another number that we have to be aware of: \u201cTowards the downside, $32,500 acted as support during the initial sell-off, but $29,000 remains as the most critical support level. A breakout below $29,000 would be unsettling, which could cause havoc in the market.\u201d If Bitcoin touches 40 or 29, the boat might start to rock. Fasten your seatbelts and be sure to wear a life jacket. BTC price chart for 02\/01\/2022 on Bitstamp | Source: BTC\/USD on TradingView.com What Causes Bitcoin Volatility? The short answer is supply and demand. However, since the Bitcoin economy is still small compared to the world\u2019s, several factors can upset or propel the price. From any kind of news to influencers\u2019 opinions to regulation talk or concrete action to whales dumping on the market to interest rates hike rumors. Anything. Also, take this Investopedia insight into account: \u201cBitcoin has only been around for a short time\u2014it is still in the price discovery phase. This means that prices will continue to change as investors, users, and governments work through the initial growing pains and concerns until prices stabilize\u2014if a stable point can be reached.\u201d Related Reading | This Bitcoin Volatility Index Pattern Suggests A Short Squeeze May Be Near Yes, Bitcoin is the largest cryptocurrency by far and Fidelity thinks it \u201cshould be considered first and separate from all other digital assets that have come after it.\u201d However, the asset is still a wild teenager. Expect volatility and learn how to deal with it. It\u2019s going to be a bumpy ride. Featured Image by Pexels on Pixabay | Charts by TradingView<\/p>\n","protected":false},"author":539,"featured_media":482658,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3],"tags":[83652,790,85331,2472,85332,85330,85333,83960,4406,85334],"class_list":["post-482655","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-arcane-research","tag-bitcoin-volatility","tag-cryptocurrency-space","tag-interest-rates","tag-resistance-levels","tag-risky-assets","tag-support-levels","tag-the-weekly-update","tag-volatility","tag-what-does-volatility-mean"],"acf":[],"yoast_head":"\nBTC\/ USD Volatility | Source: Arcane Research\u2019s <\/span>The Weekly Update<\/span><\/a><\/pre>\n
What Are The Resistance And Support Levels?<\/span><\/h2>\n
BTC price chart for 02\/01\/2022 on Bitstamp | Source: BTC\/USD on TradingView.com<\/a><\/pre>\n
What Causes Bitcoin Volatility?<\/span><\/h2>\n
Featured Image by Pexels<\/a> on Pixabay | Charts by TradingView<\/a><\/pre>\n","protected":false},"excerpt":{"rendered":"