The drop in volatility has helped broaden the base of traders and Bitcoin is expected to return.

The cryptocurrency has been volatile since its retail market exploded by $ 3 trillion in November of last year. The volatility of cryptocurrencies is "anonymous," which is one of the reasons many businesses and investors shy away from cryptocurrencies.

As the cryptocurrency with the highest market value, Bitcoin is the representative of high volatility. From 2022, the Bitcoin market price will fall below its 200 trading day average price on Monday. After Monday's drop, Bitcoin rebounded 3.3% on Tuesday, and according to press time, Bitcoin fell 0.65% to $ 46,616.54 a coin.

However, the exchange rate of cryptocurrencies could be reduced in 2022. "The best benefit of crypto trading this year is the downside, whether it goes up or down," said a US analyst at investment firm Bespoke. Investment Group. The capital will grow.



JJ Kinahan, Chief Marketing Officer of TD Ameritrade, said: “For most people, if the investment property undergoes a major change, it will be difficult to transform the financial instrument. Long term and only scares people or even makes it impossible. This way, the more stable the cryptocurrency, the more investors it can profit from. "

Bitcoin hovered between US $ 45,000 and US $ 51,000 last month. According to data from Arcane Research, Bitcoin's recent negative performance caused its entire cryptocurrency market to drop 39.5%, its lowest level in three years.

However, the recent drop in Bitcoin could be reversed and the price could try to continue to rise. Bitcoin's historic volatility over the past 30 days is at its lowest since September of last year, and the price is showing signs of the short term. The so-called Demark symbol series saw the "9-13-9" pattern above the $ 43,295- $ 44,500 support, which is Bitcoin's token bullish pattern in June-November last year.

Katie Stockton, Founder and Managing Partner of Fairlead Strategies, an analytics-driven research firm, said if Bitcoin's support level could reach $ 44,156 it hurt when Bitcoin closed above 46,334. $ Tuesday. for. If that happens, he said, Bitcoin could face a sell off and try again at the $ 55,644 price point.