Analyst: Current Bitcoin Volatility Drops to Extreme Low Levels, Signaling an Upcoming Breakout from Narrow Range Oscillation

BlockBeats News, January 13th, CryptoQuant analyst Axel posted on social media, stating that the current market volatility has dropped to an extremely low level, a calm state that often precedes a price breakout from a narrow trading range.

Axel explained that Bitcoin's actual volatility has compressed to 23%, a level that statistically rarely lasts long. Historically, this compressed state usually ends with a sharp expansion in volatility. The period of very low volatility reflects a delicate balance between supply and demand. Subsequently, the market typically enters an active phase of liquidity redistribution, accompanied by a significant expansion in price range. However, this indicator does not indicate a breakout direction and does not constitute a trading signal.