In the past period, the price of Bitcoin has lost control over the $30000 level and dropped to the $29000 level. Naturally, this will cause some harm to the sales market and implicate other coins. But the indicator values indicate that this decline is a temporary setback for BTC. Based on volatility, there is still some way to go after the gap increase is completed.

Bitcoin volatility drops to January 2023 levels

According to new information shared by the on chain data analysis platform Santiment, the volatility of Bitcoin is likely to indicate a continuous bull market. The volatility of digital currencies has been declining and has now returned to its highest level since January 2023.

The majority of the decrease in volatility can also be seen after BTC first broke through $25000 in frictional resistance. As prices continue to rise, volatility is also increasing. The last time the volatility was so low was after the FTX collapse in 2022. It caused a drought, causing BTC prices to fluctuate while continuing to decline. However, after the volatility reached the end of 2023 at the beginning of this year, prices did indeed rebound.

Since then, volatility has been developing like a roller coaster ride, reaching even higher levels before falling thereafter. In April, Bitcoin soared above $30000, with a rapid decline in volatility, which may be good news for cryptocurrencies.

Why can BTC continue to rebound

From the Santiment shared data chart, it is very clear that when the volatility of Bitcoin drops to such a low level, the price of Bitcoin usually increases. Returning to January, the chart shows that with a decrease in volatility, the price of BTC skyrocketed rapidly.

The rebound in January was a gradual increase in the profitable first quarter of the cryptocurrency sales market. As of the end of March, the value of Bitcoin and other coins has increased by about 50%. Finally, this pioneer cryptocurrency rebounded to a September high of over $30000.

If history repeats its mistakes, BTC may now see another rebound. Starting to rebound from this point may cause digital currencies to break through the $35000 frictional resistance for the first time since May 2022, which will further consolidate the opportunity for BTC to enter another bull market.

At the time of writing this article, BTC was changing hands for $30400. The coin increased by 3.18% on the 24-hour data chart and 1.58% on the hourly data chart.