How Bitcoin's Low Volatility Will Impact BTC Prices

How Bitcoin’s Low Volatility Will Impact BTC Prices

Bitcoin’s low volatility in the crypto market is currently a topic of noise in the crypto space and the market might be entering a new bullish phase as volatility drops to unprecedented lows.

Bitcoin’s Low Volatility

In a recent report, pseudonymous CryptoQuant analyst AxelAdlerJr highlighted the current low volatility in the Bitcoin [BTC] market. AxelAdlerJr examined two key volatility indicators for BTC and noted a downward trend in recent weeks, suggesting a reduced likelihood of short-term price fluctuations.

The first indicator analyzed was BTC’s Garman-Klass Realized Volatility, which measures historical price volatility by combining highs, lows, and opening, and closing prices over a specified period. According to AxelAdlerJr, this metric has dropped to 20%, signaling a decrease in BTC’s price volatility.

Historically, when this metric has reached such low levels in the past six years, BTC’s price has experienced significant changes. Additionally, the analyst reviewed BTC’s Volatility Index using a 30-day simple moving average (SMA). This metric assesses the degree of price fluctuations over a given period.

Like the Garman-Klass Realized Volatility, BTC’s Volatility Index has also declined, further confirming the low volatility in the market. AxelAdlerJr noted that the Volatility Index’s value has reached extremely low levels, observed only four times in the past six years.

BTC’s price fluctuations

AMBCrypto’s analysis of BTC’s Bollinger Bands and Average True Range (ATR) corroborated the analyst’s findings. Readings from BTC’s Bollinger Bands indicated a narrowing gap between the upper and lower bands, a sign of reduced price swings. BTC’s ATR has fallen by 44% since April 19, standing at 2138.35 at the time of writing.

AxelAdlerJr views the current low volatility in the BTC market as a positive indicator. “Given that the market’s current structure remains bullish and that the end of the low volatility period could be followed by a strong price movement, it can be concluded that the market is in the process of forming a new bullish trend,” the analyst added.


To conclude, Bitcoin’s low volatility indicates a potential shift towards a new bullish trend. As key indicators point to reduced price swings, the market may be poised for significant movement, suggesting promising prospects for BTC’s future.

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