Bitcoin has been trading in a tight range over the past few weeks. Today, the crypto has risen to $37,043, while its capitalization is approaching the $700 billion mark.
According to a recent report published by Arcane Research, the BTC volatility index is at its lowest level since November 2020.
Bitcoin’s swing range has been sharply reduced after the coin fell below $40,000. It found a bottom around $33,500 and then was able to partially bounce back. However, the pressure is still very strong.
Volatility will increase if the crypto approaches the nearest resistance level or rolls back to the support zone. The volatility index has fallen to a 15-month low in February, and analysts believe the price range of Bitcoin will remain narrow in the coming days. Arcane Research notes:
“The $40,000 mark is a key resistance level. Given the slow rise in BTC recently, we will see how the cryptocurrency will test this resistance level soon. A break would be a relief for the bulls and could signal a trend reversal.”