On October 8, Bitcoin achieved a 17-month low volatility. Experts have stated that the cryptocurrency market is maturing as more funds from the traditional finance sector flow into the market.
Although the volume of Bitcoin still remains at around $2 billion on CoinCap.io and $3.3 billion on Coinmarketcap, the dominant cryptocurrency has recorded a slight increase in price to $6,600, allowing tokens like Tron (TRX) and 0x (ZRX) to surge by 14 to 18 percent.
17-Month Low Volatility of Bitcoin, Legs Building
According to Mike McGlone, Bloomberg Intelligence commodity strategist, the decline in the volatility of major cryptocurrencies is a sign that the cryptocurrency market is maturing. He stated that the cryptocurrency market is beginning to establish itself, finding comfort in a lower price range.
“This is a maturing market, so volatility should continue to decline. When you have a new market, it will be highly volatile until it establishes itself. There are more participants, more derivatives, more ways of trading, hedging and arbitraging.”
Given the stability in the price of Bitcoin, technical price analyst Rampage stated that it is evident BTC has found its bottom. Even if the volume of the cryptocurrency market falls below the $10 billion mark, he explained that it is difficult to see BTC dropping below ots current level.
Similar to the viewpoint of billionaire investor Mike Novogratz, Rampage emphasized that the market has started to demonstrate seller fatigue, and the bears of the market are no longer willing to sell at a low price of mid-$6,000.
“Low volatility and volume gets more and more bullish the longer it goes on. Interest in the market is at an all-time low, supported with low volume and volatility, which means the sellers have finished selling. This is the bottom. Buy when no one is looking,” he explained.
Alex Kruger, a cryptocurrency trader, noted that BTC has begun to establish legs at $6,500, which suggest that Bitcoin is breaking out higher and the probability of a short-term rally is higher than before.
“BTC breaking out higher. Volatility at all time lows. Should have legs,” Kruger said.
The volume of Bitcoin still remains low and analysts expect it to be low throughout the weeks to come. But, at the moment, analysts in the cryptocurrency market consider the low volume of BTC as the lack of sellers in the market, which could create a bull-biased market in the near future.
Tron and 0x Rally
Tron and 0x recorded a 14 percent increase in price overnight, as Bitcoin, Ethereum, Ripple, and Bitcoin Cash recorded a slight increase in value.
0x is said to have increased by a large margin in the past 12 hours due to rumors that Coinbase, the world’s largest cryptocurrency brokerage, is close to integrating it into its exchange. Previously, Coinbase announced the launch of a new listing process of tokens and released its intent of listing 0x, BAT, Cardano, and Stellar in the months to come.
Featured Image from Shutterstock. Charts from TradingView.
Last modified: March 4, 2021 3:47 PM