It is known that Bitcoin (BTC) is a volatile asset, but lately, this is not the case; Bitcoin has been quoting in a very narrow range since the end of November, between $ 91,000 and $ 109,000.
In other words, Bitcoin’s volatility has compressed greatly. According to Glassnode data, the volatility carried out for 2 weeks, which provides how turbulent was the asset in the last two weeks, measures volatility in the last two annual weeks, has fallen to 32%annualized, one of the lowest levels In years in years. In addition, the options involved the volatility of one month, which is the expectation of market volatility for four weeks, has decreased below 50%annualized, again one of the lowest levels in years.
To put in context how much Bitcoin has been in this lateral consolidation, consider what the Checkmate analyst calls is the “bite index.” The data show that Bitcoin, in a weekly period of time, according to its ice cream, is at its highest level since 2015, which shows how adjusted this negotiation range has been.
Volatility tends to reverse medium, which means that an unusually stable market often paves the way for a great movement in any direction and vice versa. The longer the consolidation, the more violent the explosion of volatility is.
To shorten the long history, the current Rangeplay, the most intense since 2015, could soon pave the way for the action of the wild price. Bitcoin, at some point, will leave this range; The question remains whether it will be higher or lower.
