The largest cryptocurrency in the world, Bitcoin, has a reputation for having wild price movements, but is currently exhibiting astounding steadiness.
James Check, a well-known cryptocurrency specialist who goes by the handle @Checkmatey on social media, recently emphasised that the spread between the Upper and Lower Bollinger Bands for Bitcoin is now just 2.9%.
Bollinger Bands for Bitcoin have only ever shown such a narrow range twice before: in September 2016 and again in January 2023, according to the top Glassnode on-chain expert.
The Bollinger Bands are a technical analysis technique used to determine price volatility, for those unfamiliar with the phrase. The present degree of closeness between these bands denotes a time of minimal volatility.
The analyst’s observation is supported by CoinGecko data, which shows Bitcoin trading in a relatively narrow 24-hour range of $29,143.57 to $29,445.38. Its market price continues to hover around $29,413 despite this slight variation, giving it a market valuation of around $572.3 billion.
Bitcoin’s anomalous stability
Such low volatility periods are unusual for Bitcoin historically. Check pointed out that the present market even includes options pricing in an incredibly low volatility premium, emphasising how special this circumstance is.
According to U.Today, Bitcoin also saw a notable drop in volatility and its lowest trading volume since November 2020, outpacing that of the S&P 500, tech stocks, and gold.
Large investors are still reluctant to return to the cryptocurrency market despite potential good events like a prospective Bitcoin ETF, but a huge announcement might result in a significant increase in activity.
