Is low volatility a precursor to a surge in Bitcoin prices? Expert analysis tells you! !
Fidelity analysts point out that reduced volatility in the Bitcoin market may be a sign that prices are about to rise! Bitcoin's volatility pattern is said to be similar to that of gold in past markets, and gold has also experienced similar price discovery and volatility adjustments after market policy changes and inflation surges.
Zack Wainwright reminded that periods of low volatility mean that Bitcoin prices fluctuate less and the market is relatively calm, and this stability may lay the foundation for future price increases. There have been multiple cases in history where Bitcoin prices have risen rapidly after experiencing low volatility periods, including what happened in early 2024.
These examples show that when volatility in the Bitcoin market reaches abnormally low levels, it may indicate that the market is about to turn. During periods of low volatility, due to smaller price changes, investors may increase their holdings or new investors may enter the market, which may increase buying pressure, which may lead to rapid price increases once market sentiment shifts.
Low volatility periods not only mean relative stability in the market, but may also be a precursor to future price increases.
