Market Cap

The volatility indicator, which charts the leading cryptocurrency, has reached its lowest level for 21 months in a sign the digital commodity could face an imminent bullish or bearish trend.

The news suggests the world’s most well-known cryptocurrency may not be as vulnerable as originally thought.

Bitcoin has experienced fluctuating swings in value over the past few months, with lower price highs and lower price lows (pennant) since the end of June.

As a consequence of the fluctuations, volatility as represented by Bollinger bands width – an analysis tool derived from +2, -2 standard deviations of a price’s moving average – has hit the lowest point since December 2016, Coindesk reports.

bitcoin

Bitcoin could be about to experience huge price swings, a volatility indicator has suggested (Image: GETTY)

bitcoin

The digital asset may not be as vulnerable as predicted (Image: GETTY)

But when measured by standard deviation across all exchanges, volatility is at its lowest level since July 2017, according to Bitcoinity.

An extended period of volatility is usually an indicator of strong directional bias, meaning bitcoin could soon witness a vast swing in either a bullish or bearish direction.

At present, one bitcoin is worth £4,926 and the digital asset remains stuck in a bearish cloud, which may take a few days to clear.

The daily chart shows BTC to be trapped in a pennant pattern, with the top edge (resistance) of the pennant located at £5,236 and the lower edge at £4,760.

A chart shows the price of Bitcoin against the US dollar (Image: CoinDesk )

Meanwhile, the Bollinger bandwidth has plunged to a 21-month low.

A large swing in bitcoin prices is apparently imminent as a result of the reduced volatility.

Present resistance sits at £5,238, with some analysts predicting the digital currency to experience an ascent back towards its July high of £6,500.

But if the cryptocurrency is unable to handle itself, there may be an increase in volatility which will see the asset take a nosedive towards its June low of nearly £4,300.

ripple

Ripple has achieved a higher price since the support of CoinField Exchange (Image: GETTY)

Ripple, the third-largest cryptocurrency, achieved its latest price following news the CoinField exchange was about to launch XRP as its base digital asset.

The cryptocurrency is up more than seven percent on a daily basis as CoinField Exchange hints its support.

The asset is believed to be utilising the support of CoinField Exchange, which is considering launching Ripple as its base cryptocurrency, FxStreet reports.

What's Your View About This Cryptocurrency News? Let us know in the comments below!
SOURCEExpresss
SHARE
Previous articleGoogle ends cryptocurrency ad ban — but only for certain kinds of ads
Next articleBeaten-down cryptocurrency ether is about to rally strongly says Wall Street’s Tom Lee
Crypto Quick News provides you with a range of cryptocurrency news which we think needs your attention, we search the web to bring you the latest gossip and news to help you. Saving you the hassle and the time! For quick news and updates CQN should be your number one choice. Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. CryptoQuickNEws.com does not warrant the accuracy, correctness, or completeness of information in any of its post of analysis and therefore will not be liable for any loss incurred. CryptoQuickNews.com and its owners may hold various assets.

LEAVE A REPLY

Please enter your comment!
Please enter your name here