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Unusual stability in the Bitcoin market has been noted, with the digital asset holding firm at $30,266, a slight 0.31% decrease from the previous day. Even with a considerable 24-hour trading volume increase of 35.37%, volatility remains at a historic low.
Technical Indicators Highlight Low Volatility
Key indicators further highlight this uncharacteristic lack of movement. The 20-day Bollinger Bands used to track price volatility and potential overbought or oversold conditions, are currently experiencing an extreme squeeze. The minute 4.2% difference between the upper and lower bands illustrates a market quieter than it’s been since the lull of early January.
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Post-Correction: Supply Shifts from Loss to Profit
In addition, the recent price correction to $25,000 precipitated a significant shift in supply from a state of loss to profit. An estimated 2.47 million Bitcoins, or about 12.7% of the total supply, transitioned from ‘in-loss’ to ‘in-profit’ status, indicating a major redistribution of digital assets.
Number of Bitcoin Holders in Loss Diminishes
Simultaneously, the quantity of Bitcoin supply held ‘in loss’ has dwindled to just 4.79 million Bitcoins. This reduction in ‘in-loss’ supply is similar to figures seen in previous periods of relative market stability, including July 2021 ($30k), July 2020 ($9.2k), April 2016 ($6.5k), and March 2016 ($425).
Bitcoin Investors Advised to Wait for $32k Interim Top
In the face of Bitcoin’s unusual stability, investors are suggested to patiently await a rise in Bitcoin’s value to an interim top of $32,000. This advice comes amidst Bitcoin’s historic low volatility, with the popular digital asset currently trading around $30,266.
Potential Surge and Subsequent Drop Projected
There’s a potential scenario where Bitcoin could spike above the interim top to reach $34,000, catching late entrants off guard. However, this surge may be a temporary blip before a substantial drop.
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Predicted Fall to $25k – $28k and Bottoming Out in Q4
Following this possible brief surge, a significant decline in Bitcoin’s value to $25,000 to $28,000 is projected. This prediction includes a ‘chop-chop’ period of turbulent price fluctuations. Experts further forecast that Bitcoin will ultimately reach its bottom around $20,000 in the fourth quarter of this year, particularly in December.
In summary, the Bitcoin market displays historically low volatility levels, indicating a period of uncharacteristic stability. Investors and traders should take note of these unusual market conditions, which might provide unique opportunities to fine-tune their strategies in the cryptocurrency arena.
How to Trade Bitcoin (BTC)?
To understand the basics of Bitcoin trading, you can read our How To Trade Bitcoin Guide. It can prove helpful for traders who are just getting started with Bitcoin trading. You can also check out our list of top Bitcoin Exchanges To Trade With.
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