Bitcoin, volatility and trading volume continue to decline | coindesk JAPAN

Bitcoin (BTC)’s trading range continues to trend downward, indicating that the outlook still remains uncertain. At the same time, the dominance (Bitcoin market capitalization as a percentage of the total cryptocurrency market) continues to rise, indicating that Bitcoin remains a safe crypto asset for investors.

Bitcoin’s Average True Range (ATR), a measure of volatility, has fallen 12% in the last four days and has fallen 31% since March 23. A drop in the ATR indicates a decrease in volatility, an increase indicates an increase in volatility.

A narrowing trading range for an asset indicates that the market may be priced appropriately for that asset. However, with trading volumes declining, market participants may feel uncertain. Bitcoin trading volume is still about 30% below the 30-day average across exchanges.

Along with the reduction in volatility, the total amount of stablecoins deposited on exchanges has also decreased. Bitcoin is trading in a tight range, as evidenced by the drop in ATR, due to less risk capital available for buying crypto assets and uncertainty about the outlook.

Bitcoin’s price at the time of writing this article is $27,000. It is about 4.5% lower than high-volume nodes (price range with high trading volume and tight buying and selling), and there is room for upside in the short term.

To see high volume nodes, use the visibility volume indicator. Price movements tend to be slow near high-volume nodes because the stronger the competition between buys and sells, the more likely it is that price movements will be routine. On the other hand, low-volume nodes can experience large price volatility due to low liquidity.

Also note the decline in active addresses on the Bitcoin network. The number of addresses actively trading Bitcoin has dropped 33% since April, contributing to lower volatility.

Bitcoin’s market share increased while volatility declined, with dominance up 5% year-to-date. Bitcoin has a market cap of $523 billion, accounting for 45% of the $1.6 trillion market cap of all crypto assets.

Despite Bitcoin’s 63% year-to-date gain, investors are reluctant to seek more profits from lesser altcoins, instead using Bitcoin as a safe haven asset in the crypto market. It seems

｜Translation: coindesk JAPAN
｜Editing: Rinan Hayashi
｜Image: TradingView
｜Original: Bitcoin Volatility and Trading Volume Continue to Decline