The world’s largest cryptocurrency Bitcoin (BTC) has shown almost little to no movement over the past week and so, with volatility hitting a new low. As per the on-chain data, Bitcoin’s volatility has never been this low since July 2022.
Also, as per the historical trends, the Bitcoin (BTC) price has entered a strong rally every time the volatility has been subdued. Crypto analyst CrediBULL crypto noted: “8 out of 9 times volatility was this low we saw expansion to the upside. The one time that we didn’t was after 6 months of consolidation that followed the 2017 parabolic blow-off top”.
As of press time, Bitcoin is trading 1.73% down at a price of $28,881 with a market cap of $561 billion. However, if history is to repeat itself once again, This Bitcoin price consolidation could serve as fuel for the next BTC price rally. Furthermore, new players have continued to join the Bitcoin ecosystem with 5 million wallets created over the last year.
Over the past year, more than 5 million wallets holding #Bitcoin have been created. Imagine the entire population of Costa Rica, Palestine, or Singapore buying $BTC in just 12 months. pic.twitter.com/9OrnJYEpHI
— Ali (@ali_charts) July 31, 2023
Bitcoin Price Drop Likely Ahead?
The major exploit of DeFi platform Curve Finance has led to negative sentiment and selling pressure across the broader crypto market. Along with Bitcoin (BTC), altcoins have also been seeing selling pressure correcting 2-5% more in the last 24 hours.
On the other hand, with the BTC price slipping under $29,000, the selling pressure is obvious which can push Bitcoin to its next support level of $27,500. CrediBuLL Crypto explains: As of now, the recent $CRV events seem to be settling down, but there are still a couple of wild cards that need addressing within the next 48-72 hours before the focus can return solely to the charts. From a purely technical perspective, the drop isn’t over yet.
If the price manages to rise above the RED ZONE and the point of breakdown (POB), then it might signal the completion of the drop. However, until then, there’s an expectation of further downward movement into the GREEN zone.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.