Bitcoin’s volatility index nears its low to date
By some metrics, Bitcoin’s 30-day volatility is practically at an all-time low.
High volatility is usually followed by low volatility, but does not necessarily indicate the direction of the price trend.
Analyst Willy Woo believes this is a bullish reading for Bitcoin
The Trust Project is an international consortium of news organizations based on transparency standards.
According to one unit of measure, Bitcoin’s 30-day volatility has practically hit an all-time high, registering a standard deviation of just 0.85%.
The last times BTC has been this stable were in January 2013 and April 2016, before it took an unprecedented run to achieve multiple 1,000% gains, all in the span of a year (or two). .
Simply put, volatility measures the change in the price of an asset over a period of time. Most experts now know that Bitcoin Trader is very volatile compared to most traditional assets.
However, the “Buy Bitcoin Worldwide” site notes that even the volatility of gold, a century-old safe-haven asset, is on average around 1.2% . However, it is not certain that this is also a 30-day reading.
Bitcoin’s Volatility Index Practically Drops To New High | Source: buybitcoinworldwide.com
As noted above, low volatility is usually followed by high volatility, but it doesn’t necessarily indicate the direction of the next trend.
Bitcoin bulls in line
That hasn’t stopped prominent cryptocurrency analyst Willy Woo from predicting a bull market. Mr. Woo, who “builds models and not price targets”, theorizes that the current pressure from “hodlers” will inevitably lead to a capitulation of Bitcoin bears:
When volatility is at a minimum, it means trading volumes are at their lowest, which means that currency commission income is at their lowest, meaning that exchanges sell less BTC profits to fiat currencies. , which means that investor buying pressure dominates the next move.
To put it simply: bullish
BeInCrypto reported this low volatility phenomenon earlier in the year, while noting the price carnage that followed . Nonetheless, Woo insists that buyers are pushing the price up :
Note that volatility dropping to a low level also means that buyers have set a floor in the spot markets as they build up, which stops downward movements and reduces volatility. (accumulation of funds).
After all, Bitcoin has remained above $ 10,000 for a record number of days . This is a sign frequently used by crypto-bulls to indicate a strong build-up and calm before the storm.
Woo also speculates that this is the perfect environment for whales to come into the picture:
@michael_saylor could see this effect by collecting $ 425 million in BTC coins.
Mr. Saylor, who is the head of Microstrategy, made an unprecedented investment in the market’s first cryptocurrency in August. He believes the paltry volatility of gold will not match BTC when the infamous storm finally returns.