Why is Bitcoin price stuck?

Bitcoin price is locked in today, but several data points suggest it won't be for very long

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Bitcoin (BTC) price is locked in, fluctuating within a narrow trading range, with futures markets remaining stable and approaching all-time lows.

Why is Bitcoin price stuck?

Bitcoin price is going through an unusually quiet period, with several volatility indicators hitting near-record highs. Currently, the price of Bitcoin is up almost 2% to an intraday high of $29,735, but the rise in BTC price remains within the stable market trend, where the price has been trading between $28,670 and $31,000.

Related: Deposit Risk: What Are Crypto Exchanges Really Doing With Your Money?

Price in bitcoins. Source: TradingView

Let's explore a few reasons why Bitcoin price is stuck in its current tight range.

Bitcoin Price Sees Record Volatility

Although Bitcoin saw similar periods of sideways trading in the 2016 and 2019 cycles, realized volatility in 2023 hit multi-year lows. The 1-year realized volatility measure has reached levels not seen for Bitcoin price since December 2016.

Bitcoin price realized volatility. Source: Glassnode

The decline in realized volatility coincides with low trading volume in BTC futures and options. Bitcoin derivatives aren't the only major crypto asset approaching the lowest levels of volume. Ethereum (ETH) derivatives markets fell below January 2023 lows in August. With Bitcoin only seeing $19 billion in global derivatives trading volume, it's approaching January...