Bitcoin (BTC): Does Recent Low Volatility Signal Calmness before Stormy Upsides?
Bitcoin investors who have watched BTC’s performance closely within the past few days could have noted lower volatility toward September-end. That could have emerged from the uncertainty about the token’s potential performance in October.
Moreover, the current moves could be calm before the bellwether crypto storms upsides. That would see Bitcoin in massive action. One primary indication emphasizing BTC’s low volatility includes exchange flows decline.
Remember, exchange outflows and inflows noted a significant fall within the past two weeks, with the metrics hovering near four-week lows. BTC’s upcoming move could be underway, regardless of the highlighted volatility fall.
Exchange outflows and inflows closed in September with divergences. Inflows soared briefly between September 29 and 30, whereas outflows extended a downfall. That confirms a significant shift in the amount leaving exchanges. BTC’s exchange balance plunged significantly in that 2-day window. Nevertheless, the exchange balance index noted that only 42,902 BTC flowed out of exchanges.
The mentioned BTC amount was approximately $825.6 million, according to press time prices. That somehow matched the identified weighted sentiment change in bulls’ favor after September 25. Such indications could show volumes are supporting bullishness for the leading crypto.
Whales Participating?
Bitcoin’s supply distribution index showed a massive increase in wallet balances for the cohort holing 100,000 – 1 million BTC. That came during the final sessions of the month. Though some whales bought during this phase, some large wallet investors contributed to selling pressure. That includes whales with 100 – 1,000 BTC and the category holding 10,000 – 100,000 BTC.
Most whales lessened their activity, especially on September 30. Some of the leading addresses trimmed their balance slightly in this timeframe. That has backed the brief decline within the past three days. Therefore, market players should look for a potential bear trap in the coming sessions.
Bitcoin closed September with the RSI denoting higher relative strength, while the MACD flipped beyond the zero level. These indications supported bulls. Nevertheless, these price zones remain lucrative for whale manipulation.
A decline from press time zones would welcome heightened FUD within the market. That might witness high leverage shorts because of more decline anticipations. That would see whales capitalizing on discounted prices. Meanwhile, investors should consider that Bitcoin’s press time zone represents a sizeable YTD discount.
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