Bitcoin volatility is at the lowest level seen in over 2 years, but that may be good thing.
The price of bitcoin has been going sideways for some time now, in fact, volatility is approaching historically low levels.
Currently the 30 day volatility in bitcoin is the lowest it has been since mid 2016.
That means that bitcoin has not been this stable at any point in over 2 years.
Cool, so what does this lack of volatility mean?
I am glad you asked!
Just saying that prices are stable doesn't really do us a lot of good unless we can glean some possible implications from the price action.
Luckily for us, our friends at Fundstrat Global Advisors have put together a chart showing us exactly that:
(Source:
)https://twitter.com/fundstrat/status/1053292065247891457
- fundstrat
As you can see, since 2010, the last 8 times bitcoin had this little volatility or lower, the price went up shortly after 7 times!
Yes, you read that right...
That means, periods of low volatility have been followed by large up-moves in 7 out of the last 8 times this has occurred!
Unfortunately for us, the one time when it didn't work out was in the bear market of 2014 which is what this more recent bear market often gets compared to.
Other than that though, I like our odds of a move higher being the next thing in store for bitcoin.
Stay informed my friends.
Image Source:
https://news.bitcoin.com/bitcoin-volatility-match-fiat-two-years/
