- Bitcoin closed at $10,671 on Sunday after four straight days of lower lows
- Bitcoin digested two bearish news but has remained unfazed despite global market setback
- This resilience of Bitcoin amid global bearish news is a reflection of its strong macro uptrend
Bitcoin has dropped to its lowest 180-day volatility, a record 23-month low and a 43% drop in the last thirty days. Despite macro factors affecting Bitcoin’s price during intra-day, weak volatility made it appear unfazed in the onslaught of bearish news both for the cryptocurrency and global markets.
Data from Coinmetrics revealed that Bitcoin’s 180-day volatility has dropped to its lowest of 0.028 on Sunday, which is close to a two-year low, Cointelegraph reported. The chart suggested that Bitcoin was on the path of decreasing volatility beginning January of this year. However, the flash crash of March 2020 increased Bitcoin’s volatility once again to around 0.05. This figure would generally stay until after August 2020, when volatility started dropping again.
Bitcoin closed at $10,671 on Sunday after closing at $10,551 the previous day. Sunday’s price action represented the first time Bitcoin closed with a green candle after four days of printing lower lows.
Beside the technical indicators, the market digested the news that BitMEX, a major derivatives exchange, along with its owners and key executives were charged by the Department of Justice (DOJ) and the Commodities and Futures Trading Commission (CFTC) of failing to implement stringent anti-money laundering (AML) and know-your-customer (KYC) measures. The news caused Bitcoin to drop from $10,779 to as low as $10,431 on Coinbase.
On Friday, with President Donald Trump announcing that he has contracted coronavirus, the cryptocurrency market, along with stock markets around the world tumbled. Bitcoin went as low as $10,361 on Friday.
Yet according to Cointelegraph, both the news BitMEX being charged by authorities and President Trump testing positive for COVID-19 resulted only in a less than 5% drop for Bitcoin. This was attributed to lower volatility. It added Bitcoin is continuing a period of uncharacteristic calm in a frequently volatile and fickle market.
The price action on Sunday also suggested that buyers have begun scooping out on a possible weekly low, thus increasing the price. While it was not enough to push the price further near $11,000, it was enough to weaken the brunt of bearish news. According to NewsBTC.com, the resilience of Bitcoin in the face of these news goes to show the strength of the benchmark cryptocurrency’s macro uptrend.