Against all odds, Bitcoin (BTC) has considerable stability, as the volatility of the asset is at its lowest level.
Recent data suggests that the 30-day volatility of Bitcoin (BTC) is at a near-record low. Normally, when this happens, the volatility growth increases considerably, but this is not necessarily the case at this time
However, analysts such as the well-known Willy Woo believe that the reading is optimistic for the leading cryptomoney. Let’s see which reading has better chances today.
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How is BTC’s volatility developing at the moment?
Volatility measures the change in the price of an asset during a specific period. Most people, by now, will know that Bitcoin has a high volatility compared to most traditional assets.
So right now, the 30-day volatility of Bitcoin has reached a near record low, registering a standard deviation of only 0.85%. The last time it was stable was in January 2013 and April 2016, before it made unprecedented runs to achieve several 1000% gains. All in the space of a year (or two).
In contrast, Buy Bitcoin Worldwide has pointed out that even gold has an average standard deviation of 1.2%. However, it’s not clear if that’s a reading of the same length of time as Bitcoin.
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What does Willy Woo say about it?
As we mentioned earlier, leading cryptomarket analyst Willy Woo remains optimistic about an incoming bull market. Woo theorizes that the current pressure will inevitably lead to a bear capitulation.
The analyst insists that buyers are underpinning the price. „Keep in mind that the volatility that reaches lows also means that buyers have established a floor in the spot markets as they accumulate. This stops downward movements and reduces volatility,“ Woo said.
After all, Bitcoin has stayed above $10,000 for a record number of days as reported by CryptTrend a few days ago. This can be interpreted as a signal to the bulls that a large build-up can be expected. That is, it would be the calm before the storm.
Therefore, in the coming days we cannot lose sight of the activity of Bitcoin whales. They are important players especially in contexts where accumulation does its thing, before entering a bull run of greater or lesser magnitude.