Bitcoin continues to trade sideways as volatility in the market’s most prominent cryptocurrency diminishes. Bitcoin has successfully held the $22,000 support level, although it did suffer a dip below $22,000 that was quickly bought by the bulls.
The volatility of the cryptocurrency market has been poor in recent weeks. BTC’s short-term implied volatility (IV) has recently fallen below 40%, and its trading volume has hit new lows. This indicates that BTC has entered an “extremely tight liquidity phase,” according to a Twitter post by market researcher and data analyst WuBlockchain.
Additionally, Bitcoin liquidations in the last 24 hours topped $70 million as the flagship crypto asset fell below $20,000, wiping out the liquidity of long positions on exchanges’ order books, according to Glassnode data.
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