Bitcoin Rally Fails To Budge 30-Day Volatility As It Stays At 2-Year Lows

Data shows the latest Bitcoin rally has failed to make the 30-day volatility budge, as the metric has remained at 2-year lows. Bitcoin 30-Day Volatility Currently Has A Value Of Just 1.7% As per the latest report released by Arcane Research, BTC’s price stabilizing around $20.5k has resulted in the daily volatility remaining low. The “daily volatility” is an indicator that measures the percentage changes in the daily closing price of Bitcoin averaged over a specific period of time. While this timespan can be of any length, the 7-day and 30-day volatilities are the most common and useful version of the metric. When the daily volatility has a high value, it means the crypto’s price has been observing large fluctuations recently. Related Reading: Here’s Why The Current Bitcoin Bear Might Last A While Longer On the other hand, low values of the indicator suggest that the market has been stale during recent days. Now, here is a chart that shows the trend in the Bitcoin weekly and monthly volatilities over the past year: The value of the two metrics seems to have been pretty low in recent weeks | Source: Arcane Research’s Ahead of the Curve – Nov 1, 2022 As you can see in the above graph, the 7-day Bitcoin volatility has been at a low level for a while now, and the 30-day version of the metric has also plunged down recently. The 7-day volatility has actually slightly gone up in the last week as a result of the rally, reaching a value of 2.2%. This is, however, still notably lower than the 3.1% yearly average of the indicator. After the monthly volatility’s recent decline, the metric has hit around 1.7%, a low level not seen since two years ago. The reason for such low values of this indicator is the endless consolidation that the crypto observed around the $19k level. Related Reading: Bitcoin Miner Selling Power At Lowest For 2022, Green Sign For Market? While there has been some burst of activity recently, it hasn’t been enough to make a dent on this timescale. Another contributing factor is that since the initial chaotic increase, Bitcoin has once again fallen back to sideways movement, this time around the $20.5k level. This is why the 7-day volatility, though higher than before, is still historically low. BTC Price At the time of writing, Bitcoin’s price floats around $20.4k, down 1% in the last week. Over the past month, the crypto has gained 6% in value. The below chart shows the trend in the price of the coin over the last five days. Looks like the value of the crypto has so far held above the $20k mark | Source: BTCUSD on TradingView Featured image from Jievani Weerasinghe on Unsplash.com, charts from TradingView.com, Arcane Research
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