Bitcoin has become as stable as possible for the first time in 4 years

Recently, bitcoin’s volatility has been extremely low. According to the Glassnode analytical platform, the weekly price range of BTC was only 3.4%, which was one of the lowest values in the last three years. However, market experts are convinced that such periods of inactivity are usually followed by dynamic movement.

Experts noted that the current market situation can be compared to January 2023 and July 2020, when the bitcoin price was clamped in a narrow trading range.

In early 2023, the BTC rate hovered around $ 17,000 for several weeks before rising above $ 23,000 for two weeks. A similar situation was observed in July 2020, when, after several weeks of hovering just above $ 9,000, the price of bitcoin rose to $ 12,000.

As with the previous two times, market analysts are currently noting a bearish trend. Despite the impressive growth, the main cryptocurrency is still trading 61% below its all-time high in November 2021 and risks falling even further if the crypto market is shaken by another protracted crisis.

on May 21, trader and analyst @rektcapital noted that a weekly close below $ 27,600 would «double confirm the breakout and could set BTC up for a continued decline.» Given that the weekly candle closed at $ 26,800, his theory may be correct.

BTC has been moving in a sideways channel amid declining volatility for ten days. In the event of a sharp drop in price, the nearest important support will be at $ 24,400. Online analysts also drew attention to this zone.

At the time of writing, the flagship cryptocurrency BTC $71,035.42 Bitcoin 5.22% Market capitalization $1.4 trillion VOL. 24 hours $2.72 billion is trading at $ 26,963 with a market capitalization of $ 566.4 billion. Traders made daily trading deals worth $ 10.7 billion.