Dennis Porter, CEO of SatoshiActFund, observes that Bitcoin's volatility is currently at historic lows. Posting a chart, he noted that the last time Bitcoin volatility fell this low, "it went on a 600% rip."
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Source: @Dennis_Porter_/Twitter
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On-chain data reveals that Bitcoin volatility is at an all-time low. In the chart Porter posted, he points to a similar drop in volatility in late 2020.
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It should be recalled that Bitcoin broke out of the consolidation phase in October 2020. Its price was then a little below $10,000. Fast forward to almost a year later, when Bitcoin reached an all-time high of $69,000 in November 2021, representing a near 600% increase.
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Per crypto analysts tracking historic BTC volatility levels, another time volatility fell to near-current levels was in late 2018. This was a bear market identical to the current situation, with crypto prices decreasing for the entire year.
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Will history repeat itself?
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While Bitcoin consolidates, crypto analyst Ali Martinez believes that a sustained move outside of $16,000 and $17,000 may likely determine the trend's direction.
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Referring to IntoTheBlock's on-chain data, Bitcoin sits between two significant supply walls: one at $16,600, where 1.46 million addresses hold 915,000 BTC, and another at $17,000, where 1.27 million addresses hold 730,000 BTC.
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Source: @ali_charts/Twitter
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At the time of writing, Bitcoin was marginally down in the last 24 hours at $16,833. Bitcoin has been stuck in a tight range between $16,570 and $16,911 since Dec. 21.
