- Volatility in the Bitcoin market has decreased significantly.
- AxelAdlerJr found in a new report that this has fallen to historic levels.
The Bitcoin [BTC] The market is currently witnessing low volatility, pseudonymous CryptoQuant analyst AxelAdlerJr has found in a new report.
AxelAdlerJr reviewed two of BTC’s key volatility indicators and found that they have been trending down in recent weeks, suggesting that the possibility of a near-term price swing is decreasing.
The first metric the analyst observed was BTC’s Garman-Klass Realized Volatility. This metric measures the historical volatility of the price of BTC. It combines the highs, lows, opening and closing prices of an asset over a period of time to track its volatility over that time.
According to AxelAdlerJr, BTC’s Garman-Klass realized volatility has fallen to 20%. When this metric returns low values, it indicates a decrease in the asset’s price volatility.
A historical assessment of the indicator showed that when its value fell to this low over the past six years, the price of BTC underwent significant changes.
Furthermore, the analyst took into account BTC’s Volatility Index using a 30-day small moving average (SMA). This metric measures the degree of fluctuation in the price of BTC over a given period of time.
Like the coin’s Garman-Klass Realized Volatility, BTC’s Volatility Index has also fallen, confirming the low volatility in the leading coin market.
According to the CryptoQuant analyst, the value of the index has fallen to extremely low levels, “seen only four times in the last six years.”
BTC price fluctuations are minimal
AMBCrypto’s assessment of the coin’s Bollinger Bands and Average True Range confirmed the analyst’s views.
Readings of BTC’s Bollinger Bands showed a narrowing gap between the indicator’s upper and lower bands. This happens during a period of reduced price fluctuations.
BTC’s declining Average True Range (ATR) confirmed this trend. This indicator measures market volatility by calculating the average range between high and low prices over a certain number of periods.
Read Bitcoin’s [BTC] Price forecast 2024-2025
When the indicator falls, it indicates lower market volatility and indicates that the price of the asset is moving within certain limits. At 2138.35 at the time of writing, BTC’s ATR has fallen 44% since April 19.
Source: BTC/USDT on TradingView
According to AxelAdlerJr, the current low volatility in the BTC market is a good sign. “
“Given that the current structure of the market remains bullish and that the end of the low volatility period could be followed by a strong price movement, it can be concluded that the market is in the process of forming a new bullish trend,” the added analyst added.