Analyst says BTC volatility is at a two-year low, trend direction remains unclear

Bitcoin volatility has fallen to its lowest level in the past two years, but the direction of the next major move remains unclear, on-chain analyst Axel Adler Jr. said. In a post on X, Adler said Bollinger Band width had narrowed to about 3.8%, the lowest level in the past two years, while the Average Directional Index, or ADX, a gauge of trend strength, had dropped to 11. With ADX well below 25, a level generally seen as the threshold for a defined trend, the market currently shows no clear direction, Adler said. He added that periods of extremely low volatility are often followed by larger price swings, but it is still uncertain whether the move will be upward or downward. Adler said a renewed expansion in Bollinger Band width and an ADX reading above 25 would signal whether a new trend is forming.