Bitcoin Volatility Index Suggests Large Price Move Arriving Soon

Historic knowledge of the Bitcoin volatility index hints that the worth of the crypto could observe a giant transfer within the close to future.

Bitcoin Volatility Index Has Lately Been Beneath A Worth Of 25

As identified by an economist on Twitter, the volatility index has declined right into a zone that has traditionally been adopted by an explosive transfer in BTC.

The “volatility index” in query is the BitMEX .BVOL index, and in line with the change, the metric’s worth “is the rolling 30 day annualized volatility of the every day 11:30 UTC to 12:00 UTC Time Weighted Common Worth (TWAP) of Bitcoin / USD.”

Right here, the Time Weighted Common Worth is calculated utilizing measurements made at 1 minute intervals for a interval of half-an-hour.

What this index tells us is how a lot has the current BTC worth deviated from the typical, or extra merely, how unstable it has been lately.

Excessive values of the metric recommend the crypto has proven some sharp strikes lately, whereas low ones indicate a stale market.

Now, beneath is a chart that reveals how the Bitcoin volatility index’s worth has modified throughout the previous few years:

The worth of the metric appears to have been fairly low in current days | Supply: Alex Krüger on Twitter

As you possibly can see within the graph, the analyst has marked related factors of development between the Bitcoin volatility index and the worth of the crypto.

It appears to be like like every time the indicator has dipped beneath a price of 25, after which subsequently bottomed beneath the extent, the BTC worth has seen some important strikes which have made the metric’s worth shoot proper up.

There have been three cases of this development throughout the previous few years, two of which concerned the worth making a bullish transfer, whereas the third one a crash.

From the chart, it’s obvious that the Bitcoin volatility index has as soon as once more dropped down into this historic zone as the present BVOL worth stands at round 24.59.

If the identical development as throughout the earlier cases follows now as effectively, then the crypto may be heading in the direction of one other massive transfer within the close to future.

BTC Worth

On the time of writing, Bitcoin’s worth floats round $19.4k, up 1% within the final seven days. Over the previous month, the crypto has misplaced 9% in worth.

The beneath chart reveals the development within the worth of the coin during the last 5 days.

Appears to be like like the worth of the crypto has largely been shifting sideways throughout the previous few days | Supply: BTCUSD on TradingView

Featured picture from Kanchanara on Unsplash.com, charts from TradingView.com