Bitcoin’s volatility is strongly reduced

15 August 2023 164
Bitcoin’s volatility is strongly reduced

The volatility of bitcoin quotations has decreased significantly. Traders have become less active in the market, showing that they are losing interest. 


The digital asset’s volatility is low, and its price stays virtually unchanged above the $29,000 level for over a month. However, there are signs that the situation may change. Bitcoin-related investment products attracted $29 million in inflows last week.


According to a CoinShares report, this inflow of funds has recovered from outflows of 144 million in the previous three weeks. The data suggests that sentiment toward the main cryptocurrency and the broader blockchain market remains favorable despite seasonally low sales volumes, as reported by CoinShares.


At the same time, representatives of the eurozone's main financial institution are skeptical about the first digital currency. According to them, bitcoin is rarely used in legal areas. It couldn’t be an investment vehicle, as it is unable to generate cash flows. It cannot be treated as a dividend-paying stock, and its practical application is limited compared to gold or platinum. 


The European Central Bank (ECB) emphasizes that attempts to regulate the crypto industry shouldn’t be confused with its support. Officials highlight that bitcoin hurts the environment. 


In particular, miners consume the amount of electricity compared to an entire country, such as Austria. The regulator doesn’t intend to support bitcoin to avoid the probable reputational risks.


The BTCUSD exchange rate forms an upward corrective trend on the D1 timeframe in terms of technical analysis.

The indicator Stochastic Oscillator (standard values) forms an upward trend.


Price fluctuation in a narrow range can bring the bitcoin rate near the ascending support, which creates a chance for a price to bounce from it.


Quotations of the cryptocurrency are in the zone of profitable purchases.


Signal:

Short-term prospects for BTC USD are purchasing.

Target is at the level of 31 500.

Part of the profit should be fixed around the level of 30 500.

Stop-loss is around the level of 28 100.


The bullish trend is short-term, so choose a trading volume of no more than 2% of your balance.

This content is for informational purposes only and is not intended to be investing advice.

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