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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

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

Reynaldo Marquez
Reynaldo Marquez
3 years ago
2 mins read
Bitcoin BTC BTCUSD

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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.

Bitcoin BTC BTCUSD
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.

Bitcoin BTC BTCUSD
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.

Bitcoin BTC BTCUSD
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

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
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Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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