- Experts believe that low volatility will promote cryptocurrency industry development.
- BTC/USD trapped under short-term SMAs.
Cryptocurrency market volatility has receded. Bitcoin 3-day volatility index is registered at 1.62, and it hasn’t been above 3% since the beginning of September. Experts believe that it may signal that the market has become less speculative and more mature, opening the gates for new real-life use cases for digital assets.
“The low volatility is a sign of speculation leaving the market and eventually a bottoming process. High volatility is a significant factor lessening most cryptocurrency use cases for anything other than speculation,” Bloomberg Intelligence analyst Mike McGlone says.
Other analysts support the view that the less volatility is, the better. Moreover, Charlie Morris from Atlantic House Fund Management believes that the market is going to reverse soon as bears are getting tired, which is confirmed by a prolonged period of consolidation in a narrow range.
“It simply means the market is calm and in balance. That implies that speculative interest is low. Given this bear market is now ten months old and is getting tired, I’d be inclined to be bullish for the next major move,” he said in an email to Bloomberg.
BTC/USD is trading at $6,398 with all short-term SMAs clustered above $6,400 handle. The bulls have to push the price above this area to mitigate bearish risks and proceed to $6,450 strengthened by DMA50 and $6,500.
On the downside, watch out for $6,350 followed by a more significant $6,300 handle.
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