Bitcoin Volatility Reaches Pre-Bull Breakout Levels
Bitcoin bounced off the high area of around $30,000, trending towards the higher end of its current range. The first cryptocurrency by market cap managed to trace its weekend losses and bounce back to the $40,000 area.
Related literature | TA: Bitcoin Recovers Losses, But Here’s Why $41.5K Could Avoid Gains
At the time of writing, Bitcoin is trading at $41,600 with gains of 6% and 5% respectively in the last 24 hours and 7 days.
BTC is moving sideways on the 4-hour chart. Source: BTCUSD trading summary
The general sentiment in the market seems optimistic as the price of BTC was able to push back the bears’ fresh attack and prevent further losses. The $38,000 to $39,000 area was packed with bid orders, as NewsBTC reported yesterday, which proved a critical zone for the recovery.
The current price action appears to be trending upward in volatility after a long period of stagnation for the price of BTC. As seen below, data from Arcane Research indicates that low levels of volatility could be brewing Bitcoin for another rally or a pullback from its previous highs.
The research firm noted that Bitcoin’s 30-day volatility hit a multi-year low. The last time this statistic was at its current level was in November 2020.
At that point, Bitcoin broke out of its bear market price action from the $3,000 to $16,000 range and into uncharted territory. The decline in volatility seems to have hinted at this price move and could potentially be indicative of BTC’s future performance as it bounces back to $40,000.
Arcane Research noted the following about BTC’s volatility and why it’s signaling more market activity:
Bitcoin’s bland price action over the past month led to bitcoin’s 30-day volatility reaching its lowest levels since November 5, 2020, on Saturday, April 16. The fall 2020 low volatility regime lasted for nearly three months from late September to early November, but such a long period of low volatility is unusual.
Source: Arcane Research
Bitcoin Whales Push Price From The Bottom Of Its Range
Separate data from Material Indicators (MI) indicates an increase in the short-term activity of major Bitcoin investors. As seen below, investors with bid orders around $100,000 (in purple), $10,000 (in red), and $1,000 (in green) are buying into BTC’s current price action.
Major investors are buying into BTC’s current price action. Source: Material Indicators
Retail investors and “mega” BTC whales are sleeping. In total, other investor classes have bought as much as $60 million in BTC in the past day.
$39,000 and $38,000 continue to provide significant support for BTC’s price in the event of a possible downtrend. On a positive note, $45,000 and $48,000 are BTC’s main resistance levels with over $10 million worth of orders at these two levels alone.
Related literature | Now or never: Bitcoin builds base on decades-long parabolic curve
Can the BTC whales push the cryptocurrency to the high $60,000 and into uncharted territory like November 2020? Time will tell. Macro conditions look unfavorable for another rally.
#fire cards 2.0 (beta) shows #Bitcoin liquidity is in flux. There is currently ~$25 million in Ask liquidity between here and the next technical resistance level, the 50 Day MA.
Note: MegaWhales are yet to be purchased. #crypto
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— Material indicators (@MI_Algos) Apr 19, 2022