The crypto markets are chopping around the pre-determined levels as the Bitcoin price continues to trade below $29,500. The market cap remains consolidated at around $1.16 trillion, while the trading volume increased by 18.10% to reach $30.87 billion. In times when the BTC price is failing to attract investors, the possibility of massive price action emerges. However, in the absence of liquidity, the chances of a steep bearish trend haunt the Bitcoin price rally.
Ever since the beginning of the second quarter, the trading volume of Bitcoin has been slashed by over 90%. The price did manage to hold a significant upswing despite the dried volume to some extent. Now that the levels have dropped iconically, the volatility has also plunged and is testing historic lows. This usually indicates a very large move is going to happen. This may either create a huge upswing or drag the price below lower support.
As mentioned above, volatility has dropped to its lowest levels, which indicates a breakout could be fast approaching. However, it does not indicate the direction and may also take another couple of weeks to validate. Considering the current trade setup, massive bearish divergences have been spotted, like time targets, Elliott wave counts, price action indicators, moving averages, and very positive sentiment, which is considered bearish.
Along with this, weakening fundamentals like the rising exit ratio of market makers, regulatory risk, sinking crypto banks, on-ramp closing, and over-leveraged holders like MSTR, DCG, and some major miners may generate macroeconomic risk with global rates going higher with no sign of the FED rate cut until late 2024.
If a bullish move stabilizes, then a clear upswing towards $40,000 could be imminent. Conversely, if a descending trend triggers, as speculated, then a bear market may begin with a bearish target of around $10,000 in 2024 or still lower in 2025.
Source: https://coinpedia.org/price-analysis/bitcoin-volatility-nears-historic-lows-a-large-move-is-fast-approaching/