Bitcoin's daily price changes have slowed down significantly over the past month, with only six days out of the previous 26 presenting a move higher or lower exceeding 1%. This sustained low level of volatility has not been seen since January. The futures basis, which measures the gap between monthly settled bitcoin futures on the CME and bitcoin's spot price, has also indicated dwindling confidence among sophisticated traders. This trend is attributed to rangebound trading, the inability to sustain momentum over $30,000, and a lack of an imminent catalyst during the seasonally slow summer months. Analysts have noted that the historically low levels of Bollinger Band Width (BBW) on a weekly timeframe could indicate a potentially large outsized move is imminent.
All Comments