Bitcoin's Volatility Remains Low Compared to Previous Cycles: Is a New ATH on the Horizon in 2024?
Bitcoin has seen a recent price surge, sparking renewed optimism in the market as investors take note of its growing momentum. Despite these gains, data from Coinglass reveals that Bitcoin's volatility is still low compared to past cycles. This calm during the rally has led to questions about whether BTC is on the cusp of a major move, possibly setting a new all-time high this year.
Historically, Bitcoin's most significant rallies have been accompanied by sharp increases in volatility. Yet, current market data suggests that traders may be waiting for a key trigger to unlock a larger price movement. Many analysts are paying close attention, interpreting the low volatility as a potential signal of stabilization before a significant breakthrough.
Recent developments, such as the Federal Reserve’s decision to cut interest rates by 50 basis points, have fueled Bitcoin's price rise. According to Daan, while BTC is showing some volatility, the real breakout could be just around the corner. He predicts that volatility will increase as Bitcoin nears the end of its longest consolidation phase in 2024.
At present, Bitcoin is trading at $62,995, just below the critical 200-day moving average of $63,977, which it has yet to reclaim as support. Securing this level could indicate long-term strength and push BTC towards challenging local highs around $65,000, with a possible test of the 2021 all-time high at $69,000.
However, if Bitcoin fails to hold the crucial $60,000 support level, it could face further downside risks. With the current bullish momentum depending on this support, traders are closely monitoring these key levels for any signs of a breakout or a pullback.
