Glassnode: Bitcoin volatility drops to summer 2023 levels; Fed decision may trigger next move

TechFlow reported on Oct. 28 that Glassnode's latest report noted Bitcoin has fallen back below the $84,000 to $85,000 range, which has capped price advances four times this year. Inflows into U.S. spot Bitcoin ETFs have cooled significantly, with net inflows of only about $67 million over the past two weeks; major buy-side support on Binance's spot order book has also shifted down to the $78,000 to $79,000 range, with a size of about $42 million.

Meanwhile, Bitcoin's one-month realized volatility has fallen to about 25%, returning to summer 2023 levels; since August, realized losses from each decline have continued to narrow, indicating that selling pressure has eased somewhat. Glassnode believes Bitcoin is currently in a range-bound state with weak demand and limited selling pressure, as the market watches the Fed's rate decision on Oct. 28. A daily close reclaiming $85,000 could be an initial signal of a further rebound; a break below the active investors' average cost of about $77,900 would put focus on short-term holder cost support near $75,800.

Source: TechFlow