Advertisement
AD

Main navigation

Here's Why You Should Watch Bitcoin Closely This Week

Advertisement
Mon, 4/07/2022 - 12:16
Here's Why You Should Watch Bitcoin Closely This Week
Cover image via stock.adobe.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News
Contents
Advertisement

Bitcoin's most recent price performance clearly shows that the first cryptocurrency does not have enough buying or even selling volume behind it, which leads to a lack of volatility on the market. Luckily, extremely low volatility sometimes causes big moves on the market that we are all waiting for.

Bitcoin's volatility is decreasing

Following the massive crypto market crash back in June, most crypto market participants were scared away from trading assets like Bitcoin and immediately closed most of their positions to avoid further losses.

Article image
Source: TradingView

The lack of volume on the market is the main reason behind the anemic performance of Bitcoin. Since June 21, Bitcoin has lost a bit less than 5% of its value while gaining around 5% back on June 25, which shows that the first cryptocurrency remains in a state of consolidation and the real buying or selling power is not on the crypto market.

How volatility pushes price up or down

With the lack of volatility, almost any significant outflow or inflow of funds on the market can cause a crash or a strong rally since, with the decreasing volatility, we usually see decreasing liquidity, which is the main tool for controlling stability on the market.

Related

With the weekly average volatility for Bitcoin staying at around 5%, the market should historically expect a short or mid-term spike in volatility which, unfortunately, could push Bitcoin in both directions. 

At press time, Bitcoin is still consolidating in the $22,000-$18,000 range as both bulls and bears are not sure when to inject funds into the market again. 

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD