Bitcoin (BTC): Does Recent Low Volatility Signal Calmness before Stormy Upsides?

Bitcoin (BTC) Does Recent Low Volatility Signal Calmness before Stormy Upsides

Those who have been keeping a close eye on Bitcoin’s price action over the past few days may have noticed that volatility has been trending downwards as we near the end of September. In October, there was probably a lot of doubt about how well the token would do, and that doubt may have led to that.

Further, the current movements may be a calm before the bellwether crypto storming upsides. In such a scenario, Bitcoin’s popularity would skyrocket. The decrease in exchange flows is an important indicator of BTC’s low volatility.

It’s worth noting that both the outflow and inflow of foreign currency have dropped significantly over the previous two weeks, with the indicators currently near four-week lows. Even with the emphasized drop in volatility, BTC may already be preparing for its next move.

September ended with a discrepancy between outflows and inflows of foreign exchange. Between September 29 and 30, inflows spiked for a day but then continued to plummet while outflows continued to rise. This proves there has been a big change in the sums being removed from markets. In that two-day period, the value of BTC in circulation dropped precipitously. Yet, only 42,902 BTC were reported to have left exchanges, according to the exchange balance index.

At the time of printing, the value in BTC stated was about $825.6 million. That seemed to coincide with the identified shift in bullish sentiment’s weighting after September 25. Such trends may suggest that investor demand is strengthening the dominant cryptocurrency.

Involvement of Whales?

Those holding between 100,000 and 1,000,000 BTC saw a significant gain in their wallet holdings, as measured by Bitcoin’s supply distribution index. This happened in the last several meetings of the month. Although some whales were buyers during this period, selling pressure was added by other huge investors. That ranges from those having 100,000 BTC or more to those with as little as 100,000 BTC.

On September 30 in particular, most whales slowed down significantly. There was a minor reduction in surplus at some of the most prominent residences throughout this period. That’s helped justify the recent drop in value over the past three days. Traders should be on the lookout for a bear trap in the market in the next sessions.

At the end of September, the RSI for Bitcoin indicated increasing relative strength, while the MACD turned past zero. Bears were bolstered by these signs. Even so, there is still money to be made by manipulating these price ranges with whales.

Welcoming increased FUD in the market is a drop from press time zones. As a result of increased bearish expectations, there could be a rise in the utilization of high-leverage short positions. That would lead to whales taking advantage of sales. While this is being written, Bitcoin is trading at a sizable discount year to date, so investors may want to examine this fact.

Orizu Augustine
Orizu Augustine is an experienced crypto writer working for Alltechcraft. Having passion for writing, he covers news articles from blockchain to cryptocurrency and iPhone and Samsung related articles.