Bitcoin (BTC) is known to be a changing asset, but ultimately, this is not the case; Bitcoin has been trading on a tight range since the end of November, between $ 91,000 and $ 109,000.
In other words, the volatility of Bitcoin is huge compressed. According to Glassnode data, 2-week realized volatility, which provides how rude property in the past two weeks, volatility measurements over the past two weeks annually, have dropped to an annual 32% , one of the lowest levels in years. In addition, the options indicated by a month’s volatility, which is the market expectation for volatility for four weeks, have slipped below the annual 50%, again one of the lowest levels in Years.
To put into context how much bitcoin is on sideways integration -Is, consider what the analyst checkmate calls is the “Choppiness Index”. Data show that Bitcoin, in a weekly time frame, based on its choppiness, has been at the highest level since 2015, showing how tight this trade coverage is.
Volatility tends to be mean-reversing, which means an unusual stable market that often gives way to a major move in either direction and vice versa. The longer and lighter the integration is, the violent is the final explosion of volatility.
To cure the long story short, the ongoing rangeplay, the most intense since 2015, could adjust the way for wild price action. Bitcoin, at some point, will destroy this range; The question remains if it goes higher or lower.
