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Bitcoin Reaches Record Low Volatility: Why A History-Making Move Is Ahead

Bitcoinist

Bitcoin News / Bitcoinist 91 Views

Bitcoin price has barely moved in weeks, resulting in what is now the lowest volatility ever according to Bollinger Band Width on the one-week timeframe.

Here is a closer look at what this could mean for the undisputed king of crypto.

Weekly Bitcoin Bollinger Bands Become Tightest Ever

Bitcoin and other cryptocurrencies are known best for their notorious volatility and wild price fluctuations. Coins have commonly rallied by several hundred to several thousand percent, only to retrace and wipe out 80 to 90% of the growth during a bear market.

Following the longest bear market on record, BTCUSD had been at a standstill after reaching 30K resistance and could slowly be flipping the level into support. While this occurs, volatility has disappeared from the characteristically chaotic crypto space.

Volatility has dropped so low, it has caused the Bollinger Bands on the weekly timeframe to tighten to the most narrow width in the history of the first ever cryptocurrency. Whether it is Bitcoin or another asset, lulls in price action end with an enormous boom or bust.

Bollinger Bands Bitcoin

Why A History-Making Move Is On The Horizon In Crypto

Bollinger Band Width reaching all-time lows doesn’t say much about the direction of price action when the breakout ultimately occurs. What it does tell us in advance, is that an enormous move is coming — possibly one of the most powerful in the asset’s entire history.

Past instances of low volatility and tight weekly Bollinger Band Width always end with a bang. Sometimes these result in a boom cycle and a rally, while other times there was a severe breakdown.

For example, tightening nearly this much in 2016 led to the bull market that made Bitcoin a household name. In 2018, a period of tranquility ended with another 50% drop to conclude the bear market.

Whatever the outcome this time around, it will almost certainly be a move for the history books.


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