The lower volatility the Bitcoin price (BTC/USD) has seen in recent weeks signals that the original cryptocurrency may be nearing a bottom, Bloomberg wrote in a recent article.
The newswire noted that this month Bitcoin has had only one day with a move of 5% or more, compared to nine in January and February. According to Bloomberg Intelligence analyst Mike McGlone, this low volatility is “a sign of speculation leaving the market and eventually a bottoming process”.
“High volatility is a major factor lessening most cryptocurrency use cases for anything other than speculation,” McGlone added.
Other experts, including Charlie Morris, multi-asset head at Atlantic House Fund Management, have echoed this sentiment. Noting that the Bitcoin market “is calm and in balance”, Morris suggested that a big positive price move might be on the cards for the No. 1 digital coin.
“Given this bear market is now 10 months old and is getting tired, I’d be inclined to be bullish for the next major move,” he said, as quoted by the newswire.
Some industry figures have in recent weeks pointed to Bitcoin’s resilience in defending the $6,000 line, suggesting that it is a sign that BTC has found a new bottom. Fundstrat Global Advisors’ head of research Tom Lee recently said that the company believed that the $6,000 level was indeed the floor for Bitcoin and it was supported by the break-even for Bitcoin mining, which, as estimated by Fundstrat, was currently around $6,000.
In today’s trading, the Bitcoin price stood at $6,451.21, as of 15:41 BST. The digital coin has lost 0.4% of its value in the past 24 hours, according to data from digital currency tracker Coinmarketcap. The coin’s total market capitalisation currently stands at just under $111.9 billion.
For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.