While world economies continue to burn, Bitcoin is today moving sideways. The largest cryptocurrency has seen its volatility candle drop dramatically after days of rapid movement. Investors are however worried that the latest drop in volatility could be the calm before a storm.
Bitcoin has shown reluctance to react to changes this week, which could only mean an overreaction when it finally moves.
Prominent crypto analyst Anondran has pointed out that “Current $BTC 12H lowest volatile candle (3.3% vs 2.4%) since March 11.” March 11 marked the start of Bitcoin’s plummet, losing nearly 40% and slipping below $5K.
Current $BTC 12H lowest volatile candle(3.3% vs 2.4%) since March 11, a day before Black Thursday. Get ready for the Big Move! — Anondran (@AnondranCrypto) March 26, 2020
Investors are now embracing for such a move in the days to come, with no one entirely sure whether it will be upwards or downwards. Currently, Bitcoin sits just below a crucial test. The $6,800 resistance has shown resilience with bulls eager to break above and get above $7K. There is fear that another failed attempt to break this will see Bitcoin retrace to the $5K support.
Which Way Will Bitcoin Go?
In the hours that volatility dropped, there has been an increase in Bitcoin buying. Data from Glassnode shows that there has been an 11% increase in Bitcoin addresses in the last 24 hours.