Why You Should Pay Close Attention to Bitcoin This Week?

The most recent price performance of Bitcoin demonstrates unequivocally that there is not enough purchasing or even selling volume supporting the first cryptocurrency, which results in a lack of market volatility.

Fortunately, there are instances when extraordinarily low volatility results in significant market changes that everyone is watching for.

The volatility of Bitcoin is declining

After the significant cryptocurrency market fall in June, the majority of participants fled from trading assets like BTC and immediately closed the majority of their positions to limit future losses.

The fundamental cause of BTC’s poor performance is the dearth of market volume. The fact that BTC has gained roughly 5% back on June 25 after losing about 5% since June 21 indicates that the first cryptocurrency is still in a stage of consolidation and that the true purchasing or selling power is not found on the crypto market.

How volatility affects price movement

Since lowering volatility is typically accompanied by decreasing liquidity, which is the primary means of regulating stability on the market, nearly any sizable outflow or inflow of funds on the market can result in a crash or a powerful rebound.

The market should typically anticipate a short- or mid-term rise in volatility, which, regrettably, might push BTC in either direction. The weekly average volatility for BTC is currently about 5%.

As of the time of publication, BTC was still consolidating around the $22,000–$18,000 range since neither bulls nor bears knew when to start investing money back into the market.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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