Bitcoin’s volatility has finally reached a low, with an achievement of a 17 month low rate. The rate follows stability which was last seen in the mid of 2017.
Bitcoin’s stability has remained between the $6400 plus mark since August 9th. It only rose beyond $7000 in mid September, and other than that till date it has remained quite stable to it’s past months of high volatility.
Along with the stability, Bakkt hoping to be released in November is hoping to bring on board larger institutional investors into cryptocurrency trading. Even known financial company Goldman Sachs have announced plans of becoming cryptocurrency focused.
It is entirely possible, upon the recovery of Bitcoin’s volume and trading activity in the cryptocurrency exchange market, that the market will begin to respond to most of the progress that has been made in the sector over the last three months.
What needs to be noted is the historical trend of Bitcoin rising in large rallies when experiencing a fall in volume and volatility. The historical chart provided below confirms the trend-
Image source: Woobull.com
Due to volatility falling, there has been less short term trading activity. However one good sign is that Bitcoin’s volatility fall is a sign of maturity in the market according to Mike McGlone, a commodity strategist. McGlone suggests –
“This is a maturing market, so volatility should continue to decline. When you have a new market, it will be highly volatile until it establishes itself. There are more participants, more derivatives, more ways of trading, hedging, and arbitraging.”
A more stable market may result in new investors entering the marketing sensing a more safer environment to begin cryptocurrency trading.
Look out for $6,800 being surpassed as that is the major resistance level for a while now. Expect Bitcoin to move beyond $7000 and towards $8000 once $6800 is passed. However it’s not going to be easy to move passed $6,800 as it has failed since August 9th, which is hurting the confidence in the market.
Note that moving below $5,900 is unlikely and hence being less than $6,800 signifies that investors should accumulate BTC is possible.
Bitcoin according to CoinMarketCap is $6546.08 at the time of writing.
Image Source – Flickr