Bitcoin Price Prediction: Bitcoin Volatility Hits 2016 Low, Could Trigger Liquidations

Bitcoin price is trading around $66,100, after climbing above $66,500 earlier in the session, in a bullish prediction environment. Despite the recent rebound, its volatility has compressed to a level not seen since 2016, making many traders uneasy. CryptoQuant contributor Axel Adler Jr. noted on July 22 that Bitcoin’s 30-day realized volatility dropped to 28.3, down from 41.6 on June 25.

That places BTC in the bottom 8% of its volatility range since 2016. In other words, roughly 92% of trading days during that period recorded higher volatility. Such calm conditions rarely last for long, especially after a steady price recovery.

Meanwhile, open interest has not expanded alongside Bitcoin’s recent gains, suggesting leverage remains relatively light. That lowers the immediate risk of large liquidation cascades. However, once volatility returns, price swings can accelerate quickly and catch overleveraged traders off guard.

Now, the market is waiting to see whether this quiet stretch leads to a breakout or a sharp reversal. Key technical levels and macro catalysts will likely decide the next move. Until then, Bitcoin may stay calm on the surface, but history suggests that calm rarely lasts.

… Continue reading the full article at the original source below.