HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Last Time Bitcoin Volatility Was This Low, BTC Surged by 25% in 24 Hours

Bitcoin 2020/07/04 06:00 by Nick Chong

For the past few weeks, Bitcoin analysts have observed extremely low volatility in the nascent cryptocurrency market.

Nothing shows this inaction quite as well as the chart below from Blockroots founder Josh Rager. It shows that for the past eight weeks now, BTC has been trapped in a ~15% range — something abnormal for this volatile asset class.

Bitcoin

Chart of BTC’s price action over recent months by Josh Rager (@Josh_rager on Twitter). Chart from Tradingview.com

According to a new analysis, volatility has dropped to crucial lows suggesting that a massive Bitcoin move is imminent.

Bitcoin Volatility Is At Crucial Lows

In March, Bitcoin volatility went off the charts as the cryptocurrency saw one of its worst days in history. Within the span of a day, BTC plunged by 50%, reaching lows of $3,700 in a move that liquidated billions.

Since this volatility surge, Bitcoin has settled. As the chart above depicts, the cryptocurrency has effectively flatlined, trading with no noticeable trend.

This may be set to change, though.

A cryptocurrency trader shared the chart below on July 3rd, showing Bitcoin’s historical volatility index over the past two years.

Per the data, Bitcoin’s volatility is at lows not seen since March/April of 2019.

For those that don’t remember what happened then, here’s a reminder: after trading in the $3,000s for about four months, Bitcoin rocketed 25% higher on April 1st. The move took BTC from $4,000 to $5,000, then kick-started a multi-month bull run that took Bitcoin to $14,000.

Image

Bitcoin Historical Volatility Index, one-day chart, BitMEX chart from "XC" (@Runtheirstops on Twitter). Chart from TradingView.com

The fact that volatility is dropping so fast suggests Bitcoin will see a move of macro importance in the following weeks, analysts have said.

But when exactly that move comes, though, is a question hard to answer.

There have been some that have suggested the extremely low volatility is a bullish sign. For instance, analyst Eric Thies shared the image below, showing that Bitcoin consolidating for so long may actually be a positive sign:

“BTC stucturally looking less like a local top and more like a launchpad as of now. Naturally speaking, things may need to go down before they really go up but this time looks promisingly different.”

Image

Bitcoin "top" analysis by Eric Thies (@KingThies on Twitter). Chart from TradingView.com

Low Volatility Might Be a Good Thing

A Bloomberg analyst has speculated that the drop in the frequency of erratic price action is a good thing for BTC. Mike McGlone, senior commodity strategist at Bloomberg Intelligence, wrote in June: 

“Maturation, greater depth and plenty more exposure via futures should continue to suppress the first-born crypto’s volatility, clearly keeping it tilted toward price appreciation. We view the benchmark crypto as a resting bull that likely needs something to change significantly in its 10-or-so-year history to not just resume doing what it was doing: appreciating.”

Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Last Time Bitcoin Volatility Was This Low, BTC Surged by 25% in 24 Hours

0 Like(s)



You should also read...

Bitcoin 04/07/20 01:00 by Nick Chong
A Signal Last Seen Before Bitcoin Plunged to $3,700 Is About to Return
To many, determining which direction Bitcoin trends from here is a coin toss. One trader shared the image below with the caption: “You guys still trading this garbage? I’m not doing anythi...
Read More
Altcoins 05/07/20 12:00 by Nick Chong
Macro Cardano (ADA) Chart “Highly Suggests” the Bull Run Is Over: Analyst
Despite the rhetoric on Twitter, holding Bitcoin has actually not been the best crypto investment of 2020 thus far. The chart below shared by a cryptocurrency data analyst is a perfect case in point. ...
Read More
Bitcoin 08/07/20 11:22 by Nick Chong
Bitcoin Is at the Apex of a Multi-Month Pattern — and Bulls Are in Control
Even taking Bitcoin’s Monday pump from $9,000 to $9,400 into account, the cryptocurrency is still in a macro consolidation. Some traders have joked that considering the length of BTC’s con...
Read More
Altcoins 18/07/20 06:00 by Nick Chong
Crypto Tidbits: Twitter’s “Bitcoin Scam,” Elon Musk & Dogecoin, Institutions Want BTC & ETH
Another week, another round of Crypto Tidbits. It’s been another boring week for Bitcoin. This may sound like a broken record at this point, but it’s true. As the chart below shows, the l...
Read More
Other 05/08/20 12:00 by Nick Chong
After Ripping Past $3, Analysts Think Tezos (XTZ) Has Room to Rally
Like Chainlink and other altcoins, Tezos (XTZ) has done extremely well over recent days despite the weekend’s flash crash. On Tuesday, the popular cryptocurrency was up more than 9% on the day a...
Read More