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Bitcoin Market Builds Pressure Amid Record-Low Volatility — CryptoQuant

The indicator has fallen threefold since the start of the quarter as traders wait for the range to break in either direction.

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The Bitcoin market has entered a phase of unusual calm. Weekly realized volatility has compressed to around 17%, down from nearly 39% at the beginning of the quarter — a decline of about 56%. A CryptoQuant analyst noted that this is one of the lowest readings seen in recent years, while the long-term median remains near 34%. During periods of panic, the same metric has previously surged above 90%.

Bitcoin Realized Volatility (1-Week) chart. Source: CryptoQuant
Bitcoin Realized Volatility (1-Week) chart. Source: CryptoQuant

Realized volatility measures actual price swings rather than options market expectations.

“The compression of its 30-day average to these levels shows that the trend has lost momentum, while price continues tightening within a narrow range and building pressure for the next move,” the analyst said.

Previous episodes of similar compression have formed a consistent pattern. Deep volatility squeezes rarely fade gradually and typically precede a sharp directional move. Sooner or later, this period of forced calm gives way to a breakout.

Where the Market Could Move Next

According to the analyst, the outcome will depend on two key signals around the 200-day moving average. If the price establishes itself above this level while volatility begins expanding, it would open the way for further upside and restore market risk appetite. However, a sharp spike in volatility while the price remains trapped below the 200-day moving average would shift the scenario toward a broad wave of position unwinding.

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This post is for informational purposes only and does not constitute advertising or investment advice. Please do your own research before making any decisions.

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