Bitcoin (BTC) volume has reached historic lows before the recent price spike. Analysts now value both bull and bear market situations.
What to expect from Bitcoin price as volatility hits historic lows?
Glassnode analysts value Bitcoin’s on-chain metrics. Analysts noted that Bitcoin is starting to resemble stablecoins in terms of volatility.
Extremely low volatility cycles for Bitcoin are quite few. This cycle is typically followed by a higher or lower value breakout. Therefore, analysts first prepare themselves for a bull and a bear scenario from an on-chain perspective.
Bitcoin network processes increase as risks decrease
Analysts have observed that the volume of coins transferred in Bitcoin processes hitting Glassnode’s node mempool has always witnessed an increase since September 2022. The Mempool is where all valid processes wait to be confirmed by the Bitcoin network.
A higher mempool size indicates more network traffic, which will result in longer average confirmation deadlines and higher priority prices. Combined with the high Bitcoin volume transferred, there was a very modest increase in the average price paid. These metrics always provide a potential view of an uptrend and a changing tide. This increases the likelihood of a true market recovery.
Analysts set a bullish target of $28,500 for BTC
The crypto analyst, nicknamed El Crypto Prof, claims that there will be a significant move in BTC. Currently, the 116-day and 137-day moving averages are about to cross each other. The analyst states that every time these lines cross, there is a precious rally in Bitcoin price. It also identified a bullish target of $28,500 for BTC price in case of a breakout.
Koindeks.com As you follow, BTC price reached 3-week highs with the momentum it gained on the evening of October 25th. Following this, it broke the record of the last 6 weeks by touching $ 20,800 during the day. Information from TradingView reveals that BTC/USD has been very quiet for a very long time. This calm is especially evident with the Bollinger Bands, which are rarely close together in Bitcoin history.
This month, Bitcoin’s volatility has even dropped below some of the major fiat currencies. Thus, BTC looked more like a stablecoin than a risk asset. Analysts have been waiting for a long time for the trend to undergo a drastic change. A look at the Bitcoin historical volatility index (BVOL) shows that Bitcoin still has a way to abandon this feature, with perennial lows seen only a few times recently. Well-known on-chain analyst William Clemente looked at the current environment and made the following comments:
It’s pretty funny how volatility is compressed so much and that as market participants the slightest 3% move is conditioned to feel like a 15-20% move.