The Calm Before the Storm: Bitcoin’s Record-Breaking Low Volatility
Bitcoin has been unusually calm lately, with volatility measures at their lowest ever on weekly timeframes. However, this directionless sideways price action could continue for a while longer, despite the record-setting lull.
Key Points:
- Bitcoin price has been locked in a tight trading range, with even a $300 move feeling like a major breakout.
- The Bollinger Bands and Bollinger Band Width readings indicate an extreme tightening and suggest a potential future wave of volatility.
- While the weekly timeframe shows record tightness, the monthly timeframe suggests there could be even further to go before a breakout.
- The %B tool indicates a possible move to the upside, as long as it remains above 0.5.
- Volatility is certain to return, but the timing and duration are uncertain.
Despite the calmness, it is important to note that volatility will eventually make a comeback for Bitcoin. The current low volatility phase could be a setup for a future wave of volatility, but the timing and direction of this breakout remain uncertain.
Hot Take: While it may be frustrating to see Bitcoin in such a calm state, the record-breaking low volatility could be a sign of an impending storm. As a crypto reader, it’s important to stay patient and prepared for the inevitable return of volatility in the cryptocurrency market.
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