According to London-based cryptocurrency derivatives data provider Skew, Bitcoin’s 10-day volatility has reached its lowest level since November 2018.
The crypto king has been in an extremely narrow trading range for more than a week. This situation caused investors to watch their price movements by holding their breath.
#bitcoin 10 days realized volatility = 16%
It means bitcoin moved less than 1% up or down on average over the last ten days.
Last time this happened in November 2018, bitcoin sold off nearly 50% thereafter. pic.twitter.com/0uFNuDlR4m
— skew (@skewdotcom) July 20, 2020
Bitcoin (BTC) Bears Look Advantageous
Bitcoin bears are definitely taking advantage of BTC’s long, unstable line. The best cryptocurrency lost more than half its value when it slid horizontally for the last time. For ten days (from November 14 to November 24), BTC dropped more than 40 percent of its value from $ 6,300 to $ 4,000.
Things were much worse for Bitcoin in December, when the final phase of capitulation pushed BTC to about $ 3,180 a year. At that time, market watchers attributed the brutal sales to the Bitcoin Cash (BCH) split, which took place in part on November 15, 2018.
Horizontal Cruising Can Continue Until September
This time, the ball may be in the bulls as the cryptocurrency does not deal with hard fork battles. However, the lack of related token circulation may be problematic as it indicates a possible drop.
The implied volatility of Bitcoin predicting future price movements does not show that an important move is in motion. Interlapse CEO Wayne Chen recently predicted that this conflict may not be resolved until the fourth quarter.
“You won’t see any action until September or October.”