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BTC Price Stabilizes as Bitcoin Volatility Index Reaches 6-Week Lows Ahead of Major Macro Risk Events – Here are the Critical Levels to Monitor

Bitcoin’s volatility has hit a six-week low, according to Derebit’s Bitcoin Volatility Index (DVOL), even as several macro risk events loom. The index has fallen to 52, its lowest level since 8th March, despite the recent pullback in Bitcoin’s price from its 10-month high of over $31,000. Several key events are due this week and next, including US GDP growth estimates, inflation gauge releases, tech giants’ earnings reports, and the US central bank’s rate decision. The drop in Bitcoin volatility expectations suggests that traders and investors are predicting that Bitcoin will consolidate within recent ranges, instead of making aggressive upward moves. However, traders should remain cautious about the potential impact of upcoming macro risk events on the market.

Bitcoin Volatility Index Hits 6-Week Lows Despite Macro Risks on the Horizon – BTC Price Levels to Watch

Keep an Eye on These BTC Price Levels

Bitcoin Volatility Index Hits 6-Week Lows Despite Macro Risk Events; Traders Eye Key BTC Price Levels

Despite the recent pullback in Bitcoin’s price from its 10-month high, Derebit’s Bitcoin Volatility Index (DVOL) fell to 52, its lowest level since March 8th. This drop occurred despite several key macro risk events looming in the coming weeks, including the release of US GDP growth estimates and inflation gauge reports, earnings reports from major US tech behemoths, and monthly US ISM PMI surveys and jobs data. However, traders shouldn’t discount the possibility that these events could upend the market.

Traders should keep an eye on the $27,000 and $28,000 levels at the start of the week, as they mark recent intra-day highs and lows, with the 50-Day Moving Average sitting at $27,120. The $26,500 area could offer decent intraday support if Bitcoin falls back to those levels. To the upside, the $28,800-$29,300 area marks a series of late-March/early-April highs and the 21-Day Moving Average, which could offer intraday resistance if the bulls regain control.

Long-term on-chain indicators are flashing a buy signal for Bitcoin, and long-term market cycle analysis suggests that the cryptocurrency is in the early stages of a bull market. As a result, if Bitcoin were to drop back to the $25,000s, it is more likely to be viewed as a great buying opportunity by market participants rather than a catastrophe. A recent trading signal suggested that a rebound back above $30,000 within the next few days is likely based on historical price action patterns. Overall, dip-buyers are likely to keep the BTC price supported for the foreseeable future.

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