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Bitcoin value has barely moved in weeks, leading to what’s now the bottom volatility ever based on Bollinger Band Width on the one-week timeframe.
Here’s a nearer have a look at what this might imply for the undisputed king of crypto.
Weekly Bitcoin Bollinger Bands Develop into Tightest Ever
Bitcoin and different cryptocurrencies are recognized finest for his or her infamous volatility and wild value fluctuations. Cash have generally rallied by a number of hundred to a number of thousand p.c, solely to retrace and wipe out 80 to 90% of the expansion throughout a bear market.
Following the longest bear market on document, BTCUSD had been at a standstill after reaching 30K resistance and will slowly be flipping the extent into assist. Whereas this happens, volatility has disappeared from the characteristically chaotic crypto area.
Volatility has dropped so low, it has induced the Bollinger Bands on the weekly timeframe to tighten to probably the most slender width within the historical past of the primary ever cryptocurrency. Whether or not it’s Bitcoin or one other asset, lulls in value motion finish with an unlimited increase or bust.
When will explosive volatility return? | BTCUSD on TradingView.com
Why A Historical past-Making Transfer Is On The Horizon In Crypto
Bollinger Band Width reaching all-time lows doesn’t say a lot in regards to the path of value motion when the breakout finally happens. What it does inform us prematurely, is that an unlimited transfer is coming — presumably one of the vital highly effective within the asset’s total historical past.
Previous cases of low volatility and tight weekly Bollinger Band Width at all times finish with a bang. Generally these end in a increase cycle and a rally, whereas different instances there was a extreme breakdown.
For instance, tightening practically this a lot in 2016 led to the bull market that made Bitcoin a family identify. In 2018, a interval of tranquility ended with one other 50% drop to conclude the bear market.
Regardless of the final result this time round, it’s going to virtually definitely be a transfer for the historical past books.
#Bitcoin 1W Bollinger Bands are the tightest in its total existence
One thing completely huge is coming
That is the calm earlier than the storm pic.twitter.com/WlAVBwjuXJ
— Tony “The Bull” (@tonythebullBTC) July 25, 2023
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