BlockBeats News, January 13 — CryptoQuant analyst Axel posted on social media that current market volatility has dropped to extremely low levels, a calm state that often indicates an imminent breakout from narrow trading ranges.
Axel explained that Bitcoin’s actual volatility has compressed to 23%, a level that rarely persists for long statistically. Historically, such compression states usually end with a sharp expansion of volatility. The extremely low volatility period reflects a delicate balance between supply and demand, after which the market typically enters a phase of active liquidity redistribution, accompanied by a significant expansion of price ranges. However, this indicator does not specify the direction of the breakout and does not constitute a trading signal.