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Bitcoin Volatility Dips Amid Capital Inflow, Signaling Possible Trend Pause
The influx of substantial capital has contributed to making Bitcoin less volatile.
According to CryptoQuant, the quarterly (3-month) realized volatility has decreased to 70%, approaching historical lows but slightly above the local minimum of 62% recorded on September 23, 2023, when the price was $26,000.
The maximum realized volatility in this cycle reached 143%, significantly lower than previous cycles, where it peaked at 236%.
Historically, periods of low realized volatility have served as a pause before the onset of the next trend phase.
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AI Analysis
The recent decline in Bitcoin's realized volatility to around 70%, close to historical lows, suggests that recent capital inflows have stabilized the market somewhat. This reduction in volatility can ...
AI Recommendation
Given the current low volatility levels and the proximity to historical lows, it is advisable for traders to prepare for potential volatility expansion. While the market appears to be in a consolidati...
Disclaimer
The AI analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.