Bitcoin’s 14-day trading range is now more compressed than 99.5% of its entire history. Only 19 times before have there been such a compression. In all of those 19 cases, the market produced at least 12.5% of volatility within the next 45 days. The maximum median volatility was +21.5%, while the average reached +27.9%.
The interesting part is: the data is almost unable to predict direction. In 9 of these cases, it broke upward first; in 10, it broke downward first.
So this signal doesn’t tell you where Bitcoin will go—it tells you Bitcoin probably won’t stay this quiet for much longer. The range is tightening. Volatility is compressing. Eventually, something always happens.
Bitcoin may be approaching another major volatility expansion. That’s why volatility has been lasting for so long.$BTC
The interesting part is: the data is almost unable to predict direction. In 9 of these cases, it broke upward first; in 10, it broke downward first.
So this signal doesn’t tell you where Bitcoin will go—it tells you Bitcoin probably won’t stay this quiet for much longer. The range is tightening. Volatility is compressing. Eventually, something always happens.
Bitcoin may be approaching another major volatility expansion. That’s why volatility has been lasting for so long.$BTC
