Bitcoin Holds Steady Near $29.2K
• Bitcoin has entered strong consolidation, trading at around $29,000 levels with volatility hitting a 3-year low.
• The largest cryptocurrency’s long-term holders are holding firmly while address activity is picking up to a 3.5-month high.
• Historical patterns suggest that we may soon see an increase in Bitcoin’s volatility.
Bitcoin (BTC) has been trading in a tight range over the last few weeks, seemingly unaffected by macroeconomic and industry events that would have typically influenced investors in the past. However, based on historical patterns, it is expected to enter more volatile periods ahead with 8 out of 9 times seeing expansion to the upside when volatility was this low since 2015.
Strong Hands & Address Activity
Despite all the developments in the market over the last two years, Bitcoin’s long-term holders have continued to hold strongly with 55% of its supply not moving in two years. Moreover, after a dull July, the Bitcoin address activity is once again picking up in August and has reached a 3.5-month high.
Macro Events & Other Crypto Assets
The world’s largest cryptocurrency seems largely unaffected by macro events that could have potentially caused price movements as they did before and other crypto assets such as ADA SOL ETH and XRP show some weakness compared to BTC’s stability near $29k mark .
Analysts believe that given these indicators along with its historical trends, the Bitcoin market is likely headed for higher volatility soon which could result in an eruption of prices as well as investor activity within the space.