Bitcoin Volatility Lows: Last Time This Happened, BTC Rallied Over $2,000
At the moment of writing this article, Bitcoin and more important coins in the crypto market are trading in the red. Currently, Bitcoin is trading at $9,188.61.
There have been all kinds of bullish predictions about the price of Bitcoin especially following the May halving.
But the coin did not surge significantly, during the past month, it was only able to re-test $10k more than once, but then the price fell due to selloffs.
Bitcoin sees low volatility levels
Now, Coindesk revealed that we’re in the fifth week of low-volatility and this is quite similar to when Bitcoin rallied by more than $2,000 back in October 2018.
It was also revealed that the Bollinger bandwidth which is a price volatility gauge, has declined to 0.08, the lowest level since mid-October 2019.
“Bollinger bands are placed two standard deviations above and below the 20-day moving average (MA) of price. Meanwhile, the Bollinger bandwidth is calculated by dividing the spread between the volatility bands by the 20-day MA,” Coindesk writes.
The same online publication also noted that a long period of low-volatility consolidation is often paving the way for a big move in either direction, says a technical analysis theory.
“That’s what happened in four days after Oct. 17. The cryptocurrency suffered a minor drop from $8,000 to $7,300 on Oct 22-23 only to rise sharply to $10,350 by Oct. 26. Essentially, prices rallied by $2,350 in the nine days following the volatility gauge’s drop to 0.08,” Coindesk writes.
Check out the complete analysis in the original post.
Bitcoin adoption intensifies
In other news, it’s been revealed that there are some exciting moves being made int he crypto space that will drive Bitcoin adoption.
It’s been revealed that shoppers in the US are able to buy BTC with cash at pharmacy chains and convenience stores.
The mainstream push is made via a network of Bitcoin ATMs, cashiers, and kiosks operated by Boston-based Libertyx.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.