Bitcoin’s volatility evolution: From excessive swings to secure floor

Posted: September 18, 2023

• Bitcoin has not witnessed a single day with volatility over 150% within the present halving cycle.
• BTC has maintained the $26,ok value vary regardless of the slight declines.

Bitcoin [BTC], together with many different cryptocurrencies, has confronted allegations of maximum volatility and the related danger of holding it. Lately, information has offered a solution to the query of its volatility when in comparison with typical property.

Learn Bitcoin (BTC) Value Prediction 2023-24

Bitcoin sees much less prolonged volatility

A latest put up from Ecoinometrics revealed that Bitcoin exhibited reducing situations of maximum volatility following every of its halving occasions. The report highlighted that within the first halving cycle, it had over two months with volatility exceeding 150% inside a one-month timeframe.

Within the second halving cycle, this era diminished to roughly one month with such elevated volatility. Remarkably, within the present halving cycle, BTC has not witnessed a single day with volatility surpassing 150%.

Supply: Ecoinometrics

These volatility occasions signified that whereas Bitcoin’s common volatility remained comparatively excessive, it has ceased to bear prolonged durations of maximum volatility. Ecoinometrics attracts a comparability, suggesting that BTCs volatility is now just like that of NVIDIA or Tesla.

Bitcoin’s 4-week volatility metric

Latest information from Santiment indicated that Bitcoin has certainly skilled notable value volatility previously few months. This metric revealed important fluctuations in volatility, though these fluctuations have typically not endured for prolonged durations, as famous within the Ecoinometrics put up.

As of this writing, the value volatility rating was roughly 0.017%. The very best degree of volatility noticed over 5 months reached 0.07%.

Supply: Santiment

BTC’s value development

On the Bitcoin every day timeframe, the Bollinger Band indicated some value volatility previously couple of months. Nonetheless, this volatility has not been sustained over an prolonged interval. As of this writing, the band was displaying low volatility, with a spread between $25,ok and $27,ok.

Additionally, over the past two days, there have been slight declines in Bitcoin’s value, but it surely has managed to carry across the $26,ok degree. As of this writing, it was buying and selling at roughly $26,500.

Supply: TradingView

How a lot are 1,10,100 BTCs value right this moment

These slight declines have saved the quick and lengthy Shifting Averages intact as resistance ranges.

Moreover, the value drop has triggered BTC to dip barely under the impartial line on its Relative Power Index (RSI), though this alteration might not be instantly obvious.