In March the volatility of Bitcoin has dropped to its lowest point for the last four months.
According to the SFOX service, the 30-day volatility of the BTC/USD pair fell to its lowest level since November 14 last year, according to a review by Forbes analysts.
SFOX expert Danny Kim stated:
In recent months, we have seen tough trading with range constraints with very short bursts of volatility, during these periods prices have risen, then sharply decreased
This analyst is confident that the current position of Bitcoin doesn’t allow more or less accurately predict the further dynamics of the movement of the coin. A similar situation was observed in the late spring of 2017.
Over the past week, Bitcoin has been trading in the range of $3,800-4,000. Analyzing the BTC movement, analysts suggest that the largest cryptocurrency is consolidating at the current level. However, the coin won’t be able to hold on to this position for a long time.
Most likely, we will see the growth of volatility, while Bloomberg analysts generally expect a decline in the BTC rate. According to them, traders are preparing for a massive reset of funds in Bitcoin.
In this situation, there is a possibility that Bitcoin will drop to $3,500 or even to $3,000, said eToro analyst Mati Greenspan.