It has been a few hours since the Bitcoin price slipped below the crucial $29,000 resistance levels and has been constantly failing to regain them. The month, which started with a huge plunge, is one of the highest drops in the past seven days. The BTC price is barely moving as the volatility is very low. The volatility levels have been recorded as the second-lowest levels in history after December 2016.
Previously, whenever the volatility dropped to such low levels, it resulted in a bullish breakout, with the crypto gaining more than 30% of its value. Hence, volatility is considered an early bull run activity that is building the foundation for huge spikes similar to those of 2015-16. However, the short-term analysis is pretty bearish and flashes the possibility of plunging close to $29,300 or lower soon.
Bitcoin broke out of the support zone between $29,140 and $29,000 a few hours ago. Hence, the price is believed to continue with its downtrend in the coming hours. The price may head towards the next support zone around $28,450 to $28,080 in the short term. However, the price received a huge buying volume in the past few hours, but still, the levels remained consolidated at around $29,000, failing to rise back to their previous levels.
We have seen multiple bull markets in the past, but the upcoming one could be a different one. The crypto payment integration, which is most likely to happen, and the Bitcoin ETFs, wherein the SEC’s decisions are pending in March-April 2024, will bring mass adoption. As after each halving, the Bitcoin price has been rising by a huge margin, a similar bullish upswing is believed to begin after the next halving too.
Therefore, it appears that the BTC price is in the early stages of a bull market and hence the price may go long in the coming days.