Why should you follow the movement of Bitcoin closely this week?
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Answer Why should you follow the movement of Bitcoin closely this week?
The recent Bitcoin price performance shows that the major cryptocurrency does not have enough buying or even selling volume behind it, resulting in no significant volatility in the market.
Fortunately, very low volatility sometimes causes big market moves that everyone is waiting for.
Low Bitcoin Volatility:
After the massive crash of the crypto market in June, most participants in the cryptocurrency market were afraid to trade risky assets like Bitcoin and most of them immediately closed most of their positions to avoid further losses.
The lack of volume in the market is the main reason behind the poor performance of the Bitcoin price.Read:How did rapper Drake lose $600,000 in Bitcoin on football?
Since June 21, Bitcoin has lost just under 5% of its value while gaining around 5% again on June 25, which indicates that the number one cryptocurrency is still accumulating and that the real buying or selling force is not there yet.
How does volatility push the price up or down?
With the lack of volatility, any inflow or outflow of funds into the market can cause a crash or a strong rally, as lower volatility is usually due to a decrease in liquidity, which is the main tool for controlling market stability.
With Bitcoin’s average weekly volatility remaining around 5%, followers should expect a short-term or mid-term rise in volatility that could push Bitcoin in both directions.
At press time, bitcoin is still trading in the $22,000-$18,000 range as both the bulls and the bears aren’t sure when to pump money into the market again.Read:One of the most popular speculative cryptocurrency exchanges is closing its doors and…
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