Volatiliy means that there is already established trading activities within the range of market like bitcoin. Simply, traders right now are mostly composed of majority of institutions that provided alot of money or so called liquidity in the market and that sellers or buyers meet in certain price level and are difficult to act without lossing a lot of money on both parties. Thus, it makes sense that despite being in higher high price action of certain financial instrument like bitcoin while decreasing volatility means that the market has stabilized; both situation creates difficulties among them ( sellers and buyers).

In conclusion, decreasing volatility means stabilized market activities but does not guarantee price to go up or down in both scenarios. Prices are speculated in its own direction and does not proved significant correlation with decreasing volatility but to market condition based on bitcoin market data.