In the beginning of October, Bitcoin achieved a 17-month low volatility rate, recording its highest level of stability since mid-2017.
Bitcoin has started to experience a noticeable decline in its volatility during a period in which the volume of the dominant cryptocurrency achieved a new yearly low.
The overall decline in trading activity in the cryptocurrency exchange market due to the uncertainty in the short-term price trend of Bitcoin is said to have contributed to the significant drop in its rate of volatility.
Mike McGlone, a commodity strategist, stated that as the cryptocurrency market matures, the rate of Bitcoin volatility will continue to rapidly decline.
The decline in the volume and volatility of Bitcoin can have a negative impact on the short-term price trend of the asset.
As seen in the volatility chart of Bitcoin, dating back to 2012, provided by Woobull, a cryptocurrency market data platform operated by technical analyst Willy Woo, Bitcoin achieved one of its lowest volatility rates in October 2013.
30 billion brokerage giant TD Ameritrade recently backed the launch of ErisX, the first regulated multi-crypto futures market with Bitcoin, Ethereum, Bitcoin Cash, and Litecoin support.
Billionaire investor Mike Novogratz has emphasized $6,800 as a major resistance level for Bitcoin throughout the past month, and if BTC comfortably surpasses that level, then it will be able to eye resistance levels in the $7,000 and $8,000 region.
Les explained that it is more likely for Bitcoin to experience a shakeout prior to a major rally on the upside.
Generally, most analysts agree that the low rate of volatility Bitcoin has shown throughout the past three months, and particularly in October, will help fuel the next mid-term rally of BTC..
Bitcoin Volatility Hits Record Low, Calm Before a Major Short-Term Rally? Experts Weigh In
Published on Oct 17, 2018
by Cointele | Published on Coinage
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