Vote for this post Share this post on:

Bitcoin’s weekly volatility reached all-time lows as the crypto exchanges hands at $20,700 following a modest relief rally thes week.

Compiled by crypto exchange BitMEX, Bitcoin’s historical volatility (BVOL), reached 16 points, a figure not seen in the ticker’s recorded history. When volatility registers below 25 points, it rarely sits there for long as the metric is indicative of a sizeable price move.


Cryptocurrencies aren’t going away. Buy Bitcoin & Litecoin here.


TradingView Chart
Bitcoin Historical Volatility Index (BVOL) – all time low

In Nov. 2018, a 16.8 reading on the index was followed by a 40% price drop in 5 weeks. That price drop signalled the ultimate bottom and would later be known as the final capitulation event of the fork-war bear market.

The following year in March 2019, BVOL registered 25.6. This reading was followed by a 630% increase in the price of Bitcoin over a 14-week period.

Fast forward to August 2020 and histrical volatility reached 21.2, after which Bitcoin rallied 653% to $60,000 in 38 weeks.

Bitcoin‘s historical volatility currently sits at a record low of 15.9. It remains to be seen whether the cryptocurrency will rally or drop precipitously over both short and long term time horizons. But Bitcoin’s stable $20,000 price, which has lasted 19-weeks so far, is unlikely to hold for much longer (if history is any indicator).

Voltaility contractions tend to act as a winded coil, filled with potential energy. When the contraction period ends, it’s typically followed by a directional impulse – much like physics. This useful tool does not exist in a vacum, however, as there are various metrics investors and traders consider.

The clock is ticking.


Join the telegram channel for updates, charts, ideas and deals.

Did you like the article? Share it!

Vote for this post Share this post on: