All of Bitcoin’s recent volatility has occurred within a relatively tight trading range between $9,000 and $10,000.
There have been a few occasions in which the cryptocurrency has broken above or below these range boundaries, but each time has been short-lived and followed by a swift movement back into the range.
This range was first formed in early-May. It isn’t showing any signs of breaking anytime soon.
A result of this price action has been Bitcoin’s volatility hitting historic lows.
Volatility levels this low are rare and are virtually always followed by massive movements.
As for where this potentially imminent movement could lead the benchmark crypto, one analyst is setting his sights on $13,000.
He also noted last month that there is a major liquidity pool sitting around $10,500, which could act as a magnet for the cryptocurrency’s price.
Bitcoin Hovers Around $9,200 as Volatility Continues Sliding
At the time of writing, Bitcoin is trading down marginally at its current price of $9,220. The crypto has been hovering around the level for the past 24-hours.
Earlier this week, BTC faced a grim rejection at $9,500 that caused it to see a sharp selloff.
The rejection here sent shockwaves throughout the entire crypto market, causing most altcoins to similarly see declines that cut into their recent gains.
While looking at the broader market, the past couple of weeks have been incredibly volatile.
The DeFi sector’s explosive growth kicked off an uptrend throughout the entire market, with many altcoins posting massive gains over a short span of time.
This volatility, however, has largely been isolated to the altcoin market, as Bitcoin volatility levels are currently sitting at historic lows.
One trader spoke about this in a recent tweet, explaining that bouts of volatility this low are typically followed by Bitcoin making massive movements.
These movements can be in either direction but tend to set the tone for where the asset trends over a macro time frame.
“BTC volatility sitting at historical lows, which historically precedes big trending moves,” he explained.
Image Courtesy of SalsaTekila. Chart via TradingView.
Why This Volatility May Heavily Favor BTC Bulls
As for where this next move could lead Bitcoin, the trader does believe that the crypto will eventually navigate towards $13,000 in the coming several months.
NewsBTC reported on this possibility in late-June, at which time the trader explained that a liquidity pool at $10,500 would likely help drag the crypto up towards this level.
“Macro BTC context: still think we’re heading towards $13K mid term. Massive liquidity pool around 10.5k, price tends to visit those sooner or later,” he said.
Image Courtesy of SalsaTekila. Chart via TradingView.
He reaffirmed this sentiment earlier today, noting that Bitcoin is going to “at least $13k this year.”
Featured image from Shutterstock. Charts from TradingView.