The last time cryptocurrency volatility was just as low, there was a big price movement. There are two factors that determine a possible change in the price of an asset.

Bitcoin volatility dropped to an annual low of 46%, writes NewsBTC , citing data from Skew analysts. The last time it was at this level in the first quarter of 2020, after which the price of cryptocurrency fell to $ 3800, and the figure rose to 200%.

Low cryptocurrency volatility can be determined by two factors. First, an asset may be in the accumulation phase. For example, last year, from January to April, the price of a coin was stably above the $ 4,000 level, followed by a rally of up to $ 14,000. Secondly, this may indicate that Bitcoin is consolidating below a key multi-year resistance level.


Since May, Bitcoin has dropped below $ 9,000 seven times. The lack of volatility at an important point may indicate a low interest of buyers, which does not allow the cryptocurrency to overcome the $ 10,000 mark. This may reduce the chances of an asset growing above the level of $ 10,500, which stopped the rally in October 2019 and February 2020.

From a technical point of view, if the BTC rate breaks the $ 10,500 zone in the near future, this will mean the end of the bear market. However, constant failed attempts to overcome the same level makes a strong uptrend less likely in the short term.

The argument that Bitcoin is in the accumulation phase is May Halving. Contrary to expectations, the cryptocurrency hash did not fall after a reduction in the miners' reward for the mined block. If miners continue to make a profit, they have fewer reasons to immediately sell mined coins, and thereby put pressure on their value.

However, the fact that the number of BTC on deposits of large investors is growing may indicate the risks of a cryptocurrency price fall soon. From March to June, the “whales” were increasingly actively withdrawing funds from exchanges to personal wallets in anticipation of sharp price fluctuations.