A notable trend has emerged in the stability of Bitcoin prices following a decrease in volatility, which has reached its lowest level since July 2022. Historical data shows that in eight out of nine instances where Bitcoin’s volatility reached such low levels, it was followed by a significant price increase. The only exception to this pattern was a six-month consolidation period following the dramatic surge in 2017, according to observations by cryptocurrency analyst CrediBULL Crypto.
Currently, Bitcoin is priced at $28,938, experiencing a 1.36% decrease, with a total market value of $561 billion. However, if the historical pattern persists, the current price consolidation period could be a calm before the storm, preparing Bitcoin for its next price rally.
It is worth noting the continued growth of the Bitcoin ecosystem. Even during periods of low volatility throughout last year, the constant and increasing interest in Bitcoin led to the creation of over five million new wallets.
While the long-term trend indicates an upward movement, the recent exploitation of the Curve Finance DeFi platform has generated negative sentiments and resulted in selling pressure across the wider cryptocurrency market. As a result, Bitcoin, along with other altcoins, experienced a correction of 2-5% in the past 24 hours.
Bitcoin’s price dropping below $29,000 has intensified selling pressure and is likely pushing it towards the next support level of $27,500. However, if Bitcoin surpasses its current bottom level and point of breakout (POB), it could indicate the end of the downward trend and lead to a new upward trajectory. The crypto market is closely monitoring these developments and anticipating a potential rise amidst Bitcoin’s current stagnation.