Cryptocurrency traders around the world have seen a sharp drop in the Bitcoin Volatility Index (DVOL) to its lowest level since the 8th of March despite recent BTC pullback from the 10-month highs of $31,000. This occurs shortly before a barrage of upcoming macro risk events like the US GDP growth in Q1, the release of the Fed’s favored monthly inflation gauge (Core PCE report), tech behemoths earnings, US ISM PMI survey and US job data, as well as rate decision from the US central bank. The lower volatility suggests that the traders/investors view the recent price pullback as Bitcoin consolidating within recent ranges rather than aggressive pushes higher.

Implied volatility from At-The-Money (ATM) option pricing remains close to recent lows. However, traders should not discount the risk that upcoming macro risk events can cause the market to take an unexpected turn. Multiple levels should be taken into account in order to monitor the markets. This includes $27,000 and $28,000 as recent intra-day highs, the $26,500 area as support, $25,200-400 area as a key long-term resistance, $28,800-$29,300 area marker as series of late-March/early-April highs, and the 21-Day Moving Average. The recently broken uptrend from late March and the trading signal which fired off last week highlights the potential likelihood of a rebound over $30,000.

The long-term positive outlook still stands as the market signals a buying opportunity and long-term market cycles suggest a bullish behavior. With numerous long-term on-chain indicators flashing a buy signal and a low volatility index, traders must stay observant in the next few weeks to make the most of any trend and remain cautious of unexpected macro events.



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