Bitcoin's volatility gauge has dropped to the lowest level in over six months.
The low volatility period will likely end with a big move on the higher side, as a repeated defense of $7,850 is indicating seller exhaustion.
Bitcoin's struggle for clear directional bias looks set to end, with volatility hitting multi-month lows and the charts suggesting a big move could soon occur on the higher side.
Further, the cryptocurrency failed to draw bids above $8,300 over the last two days despite the bullish setup on intraday charts and retreated back to $7,920 during the Asian trading hours today.
With the lackluster price action, bitcoin's 60-day daily return volatility, as calculated by Coinmetrics, has dropped to 2.58 percent - the lowest level since April 1.
The volatility gauge topped out above 5.5 percent in July and has been on a steady decline ever since, as seen in the chart below.
An extended period of low volatility often paves the way for a big move on either side.
The 60-day volatility topped out at 5 percent in early January and fell to 2 percent on April 1 - a day before BTC broke in a bull market with a $1,000 rally to $5,000.
Going further back, volatility has bottomed out quite a few times near or below 2 percent.
Bitcoin image via CoinDesk archives; charts by Trading View.
Bitcoin Volatility Hits 6.5-Month Low as Price Falls Back to $8,000
Publicado en Oct 23, 2019
by Coindesk | Publicado en Coinage
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