Calm Before The Storm: Bitcoin Volatility Reaches Pre-Bull Breakout Levels

Bitcoin bounced back from the high area of around $30,000, and trends to the upside of its current range. The first crypto by market cap managed to trace back its weekend losses and returned to the $40,000 area.

Related Reading | TA: Bitcoin Recovers Losses But Here’s Why $41.5K Could Prevent Gains

At the time of writing, Bitcoin trades at $41,600 with a 6% and 5% profit in the last 24-hours and 7-day, respectively.

BTC moving sideways on the 4-hour chart. Source: BTCUSD Tradingview

The general sentiment in the market seems optimistic as BTC’s price was able to push back the bears’ fresh assault and prevent further losses. The $38,000 to $39,000 area was full of bid orders, as NewsBTC reported yesterday, which proved a critical zone for the rebound.

The current price action seems to be trending upwards in volatility after a long period of stagnation for BTC’s price. As seen below, data from Arcane Research indicates that low volatility levels could be brewing Bitcoin for a fresh rally or a reclaim of its previous highs.

The research firm noted that Bitcoin’s 30-day volatility reached a multi-year low. The last time this metric stood at its current levels was in November 2020.

At that time, Bitcoin broke out of its bear market price action from the $3,000 to $16,000 range and into uncharted territory. The decrease in volatility seems to have hinted at this price movement and could potentially be indicative of BTC’s future performance as it rebounds back to $40,000.

Arcane Research noted the following on BTC’s volatility and why it is signaling more market activity:

Bitcoin’s dull price action over the recent month led bitcoin’s 30-day volatility to reach its lowest levels since November 5th, 2020, on Saturday, April 16th. The low volatility regime back in the fall of 2020 held for nearly three months from late September until early November, but such prolonged low volatility period is unusual.

Source: Arcane Research
Bitcoin Whales Push Price From The Bottom Of Its Range

Separate data from Material Indicators (MI) indicates an increase in short-term activity from large Bitcoin investors. As seen below, investors with bid orders of around $100,000 (in purple), $10,000 (in red), and $1,000 (in green) are buying into BTC’s current price action.

Large investors buy into BTC’s current price action. Source: Material Indicators

Retail investors and “Mega” BTC whales remain dormant. In total, other investors classes have been buying as much as $60 million in BTC over the past day.

$39,000 and $38,000 continue to display important support for BTC’s price in case of potential downside. To the upside, $45,000 and $48,000 are BTC’s most important resistance levels with over $10 million in asks orders on these two levels alone.

Related Reading | Now Or Never: Bitcoin Builds Base At Decade-Long Parabolic Curve

Could the BTC whales push the cryptocurrency to the high $60,000 and into uncharted territory as it did in November 2020? Time will tell. The macro conditions seem to be unfavorable for a fresh rally.

#FireCharts 2.0 (beta) shows #Bitcoin liquidity is on the move. There is currently ~$25M in Ask liquidity between here and the next technical resistance level is the 50 Day MA.Note: MegaWhales have yet to buy. #Crypto More from Material Indicators… https://t.co/26BLOFwenL pic.twitter.com/qRagkZTBlg

— Material Indicators (@MI_Algos) April 19, 2022

Bitcoin bounced back from the high area of around $30,000, and trends to the upside of its current range. The first crypto by market cap managed to trace back its weekend losses and returned to the $40,000 area.

Related Reading | TA: Bitcoin Recovers Losses But Here’s Why $41.5K Could Prevent Gains

At the time of writing, Bitcoin trades at $41,600 with a 6% and 5% profit in the last 24-hours and 7-day, respectively.

BTC moving sideways on the 4-hour chart. Source: BTCUSD Tradingview

The general sentiment in the market seems optimistic as BTC’s price was able to push back the bears’ fresh assault and prevent further losses. The $38,000 to $39,000 area was full of bid orders, as NewsBTC reported yesterday, which proved a critical zone for the rebound.

The current price action seems to be trending upwards in volatility after a long period of stagnation for BTC’s price. As seen below, data from Arcane Research indicates that low volatility levels could be brewing Bitcoin for a fresh rally or a reclaim of its previous highs.

The research firm noted that Bitcoin’s 30-day volatility reached a multi-year low. The last time this metric stood at its current levels was in November 2020.

At that time, Bitcoin broke out of its bear market price action from the $3,000 to $16,000 range and into uncharted territory. The decrease in volatility seems to have hinted at this price movement and could potentially be indicative of BTC’s future performance as it rebounds back to $40,000.

Arcane Research noted the following on BTC’s volatility and why it is signaling more market activity:

Bitcoin’s dull price action over the recent month led bitcoin’s 30-day volatility to reach its lowest levels since November 5th, 2020, on Saturday, April 16th. The low volatility regime back in the fall of 2020 held for nearly three months from late September until early November, but such prolonged low volatility period is unusual.

Source: Arcane Research

Separate data from Material Indicators (MI) indicates an increase in short-term activity from large Bitcoin investors. As seen below, investors with bid orders of around $100,000 (in purple), $10,000 (in red), and $1,000 (in green) are buying into BTC’s current price action.

Large investors buy into BTC’s current price action. Source: Material Indicators

Retail investors and “Mega” BTC whales remain dormant. In total, other investors classes have been buying as much as $60 million in BTC over the past day.

$39,000 and $38,000 continue to display important support for BTC’s price in case of potential downside. To the upside, $45,000 and $48,000 are BTC’s most important resistance levels with over $10 million in asks orders on these two levels alone.

Related Reading | Now Or Never: Bitcoin Builds Base At Decade-Long Parabolic Curve

Could the BTC whales push the cryptocurrency to the high $60,000 and into uncharted territory as it did in November 2020? Time will tell. The macro conditions seem to be unfavorable for a fresh rally.

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