Bitcoin’s volatility has been diving as of late, with the benchmark cryptocurrency seeing multiple prolonged bouts of sideways trading.
Last week, BTC did see some turbulence that caused its price to rally from lows of $10,400 up to highs of $11,700. This move occurred over multiple days and has since resulted in it seeing yet another phase of consolidation.
Its lack of momentum is not providing investors with any significant insights into its near-term trend, and the resistance that sits just above where it is currently trading at is quite intense.
One result of the recent series of consolidation phases seen by BTC has been its 60-day volatility diving to historic lows.
Typically, this takes place right before the digital asset makes a massive trend defining movement, which could indicate that its near-term price action will have serious implications for where it trends in the days and weeks ahead.
Bitcoin Struggles to Gain Momentum as $11,600 Resistance Holds Strong
At the time of writing, Bitcoin is trading up just under 1% at its current price of $11,530. This is around where it has been trading throughout the past few days.
Last week, BTC ended a multi-week consolidation phase within the mid-$10,000 region. News of Square acquiring $50 million worth of Bitcoin was the catalyst that helped tip the scales into bulls’ favor.
Now that it is stable within the mid-$11,000 region, bulls and bears are currently battling for control of its near-term outlook.
For bulls to prevail, it is imperative that they surmount $11,600, which is one key resistance level that it has been struggling to break above over the past few days.
$12,000 is another crucial level that needs to be decisively broken above.
Analyst: BTC’s Volatility is Diving Towards Historic Lows
Bitcoin has been seeing some wild price swings over the past month, but these have done little to provide the crypto with any type of near-term trend.
It has, however, formed a macro trading range between $10,000 and $12,400. Neither of these levels have been broken throughout the past few months.
This has resulted in its 60-day volatility plunging to historic lows, as one analyst observed.
“60-day BTC volatility sitting near historic lows,” he said while pointing to the chart seen below.
Image Courtesy of Josh Olszewicz. Chart via TradingView.
How Bitcoin continues reacting to $11,600 should offer some insights into whether or not this macro consolidation phase will continue extending further.
Featured image from Unsplash. Charts from TradingView.