Bitcoin Volatility Hits Lowest Level: Is Parabolic Rally Coming?

Bitcoin (BTC) Volatility Hits Lowest Level Since July 2020

• On-chain data reveals that Bitcoin’s volatility is at its lowest since July 2022.
• Bitcoin is trading at $28,831, showing a 1.91% decline and having a market cap of $560 billion.
• The recent major exploit of the DeFi platform Curve Finance has caused negative sentiment and selling pressure across the broader crypto market.

Low Volatility Could Lead to Parabolic Rally

Historically, whenever Bitcoin’s volatility has been subdued, it has often led to a significant upward rally. Crypto analyst CrediBULL crypto pointed out that there was an expansion to the upside in 8 out of 9 instances with such low volatility. Thus indicating that this current low volatility could lead to a parabolic rally for Bitcoin in the near future.

Growing Ecosystem Signals Positive Sentiment

The Bitcoin ecosystem has seen continued growth with the creation of 5 million new wallets in the past year, indicating increasing participation from new players. This growing ecosystem signals positive sentiment for BTC as it could lead to further bullish momentum in its price movements going forward.

Exploit Triggers Negative Market Sentiment

The recent major exploit of the DeFi platform Curve Finance has caused negative sentiment and selling pressure across the broader crypto market. This selling pressure can be seen as BTC falls below $29,000 potentially pushing it down to its next support level at $27,500 if sellers continue overwhelming buyers on exchanges.

Conclusion

Overall, despite some negative sentiment due to recent exploits by DeFi platforms, Bitcoin continues to remain relatively stable with low volatility levels not seen since July 2022 which could be an indicator for a parabolic rally soon given historical patterns and growing ecosytem activity signaling positive sentiment for BTC moving forward.