Bitcoin Volatility Hits 2-Year Lows Amid Bearish Trend
Bitcoin's volatility has hit two-year lows, sparking concerns that a major price move may be brewing. On August 10, the U.S. spot Bitcoin ETF flows measured a negative $144.6 million, breaking a streak of positive flows for five consecutive trading days.
The inability of Bitcoin to climb past the key supply zone of $65k-$67k hinted at bearish control in the market. The longer-term bearish trend is also evident on price charts, with liquidation levels pointing towards a potential drop to $57k.
Analyst Axel Adler Jr. notes that the Bollinger Bands' width has compressed to some of its lowest readings in two years, which often precedes a violent volatility expansion. The ADX indicator measures market strength and is currently at 11, below the threshold for a strong trend.
The adjusted Net Unrealized Profit/Loss for Bitcoin also shows that long-term holders are sitting on unrealized losses, which could be a warning sign of a potential sell-off.