Bitcoin and Ether now less volatile than oil: Analysis

The Bitcoin and Ether 90-day price volatility hit a new multi-year low in August as the top two cryptocurrencies continue to trade under their key resistance of $30,000 and $2,000, respectively.

90-day price volatility of Bitcoin, Ether and oil. Source: Kaiko

The chart above indicates that BTC’s and ETH’s price volatility is more than half than at the same time last year. While August is considered a bullish month for the crypto ecosystem, the declining price fluctuation is considered bullish by many.

Apart from the 90-day volatility at its lowest in seven years, the daily Bitcoin volatility is also at a five-year low.

Despite the Black Swan event of 2020, when BTC’s price fell over 50% in a day below $5,000, Bitcoin made a recovery the very next month. However, when BTC’s price neared the $10,000 mark, the momentum vanished, again recording very low volatility. After three months of low volatility, the price of BTC broke out and created new highs before running into resistance again and seeing a sideways movement.

Historical BTC price momentum after low volatility. Source: X

Bitcoin’s price leaps out of lows after a period of low volatility to form a first high, followed by another second high, while a third one is made against the key resistance. Every major low volatility period for BTC is followed by a big move.

Do you think we have more upside from here before the next halving?

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5 thoughts on “Bitcoin and Ether now less volatile than oil: Analysis”

  1. Well a lot of things have contributed to BTC’s & other Altcoins low volatility. The unending SEC clampdown on crypto and call for regulation has kept several investors sitting on the fence thereby having negative impact on the price action. It’s certain we are going to experience a mini bull before the halving but when exactly is the question. We might still experience a further decline in price especially in September base on historical. But there is so much to expect after this period.

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