Low volatility spreads in the crypto market as Bitcoin stagnated

The crypto market witnessed a dull run the previous week as Bitcoin stagnated and other altcoins traded in a tight range.

The beginning of March has witnessed the crypto market go through a phase of very low volatility, while Bitcoin stagnated in its price movement after rising to highs in the last two months. Such a low period of volatility was last seen at the end of December, after which the crypto market recovered from its losses.

Experts are still positive Bitcoin will break free from its present trading range soon, as it is expected to cross $23000 in the short term for renewed optimism in the market. Presently, the resistance for BTC has formed at $22500, while support is at $22200. Other altcoins in the crypto market also witnessed a dull phase of trading, with most of them in close range.

There are a couple of hurdles for the crypto market at present in the form of macroeconomic issues. While the fundamentals of the crypto market remain strong, inflation concerns have floated in the crypto market. There have been strong suspicions of February revealing higher inflation in the upcoming Consumer Price Index data in the United States. This could lead to higher interest rate hikes, which may not be received well by the crypto market.

BTC/USD YTD price chart

Bitcoin is currently trading at around $22400 on March 7, 2023, with BTC/USD up by 0.05% in the previous 24 hours. Almost all other altcoins witnessed flat trends in the last 24 hours. BTC/USD is trading lower than its 20-day EMA (23,192.24). As Bitcoin stagnated, a few analysts pointed towards the present phase being calm before a wave of volatility in the upcoming months.

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