Bitcoin (BTC) climbed above $126,000 for the first time ever on Tuesday. But what followed was a quick retreat of around 4% shortly thereafter. Despite the short-term pullback, the broader trend shows a historic lull in activity.
The asset’s long-term volatility has dropped to record lows, which means that Bitcoin is entering one of its calmest phases yet. Such a pattern has often preceded major price movements in the past.
Not a Cycle Top For BTC, Yet
According to Alphractal, Bitcoin’s 180-day volatility has fallen to its lowest level on record. The metric, which tracks the standard deviation of daily return fluctuations, indicates that traders are witnessing historic stability. The analytics platform explained that such low volatility often precedes major price swings.
Crypto analyst Mr. Wall Street also believes Bitcoin is gearing up for its next major rally after a brief pullback from its recent all-time high. Following a sharp 16% rise from $108,000 to $126,000 in just 10 days, he argues that BTC is consolidating rather than topping out. Contrary to bearish calls for a cycle peak, he sees this phase as a setup for a renewed surge into price discovery.
An important factor, according to him, is the ongoing accumulation by institutional giants like BlackRock, which reportedly purchased $1.2 billion in Bitcoin on Tuesday and $3.3 billion the week before. Mr. Wall Street contends that such large-scale buying will intensify and end up absorbing liquidity and forcing short sellers to capitulate.
Source: cryptopotato.com
