Bullet Points:
• Bitcoin (BTC) traders are looking for volatility in the BTC price.
• Data shows that BTC is currently experiencing its least volatile period in history.
• Charles Edwards, founder of Capriole Investments, believes a big move is brewing for Bitcoin.
Bitcoin (BTC) traders have been eagerly waiting for a breakout in BTC price volatility in order to generate the next big move. Currently, the Bitcoin historical volatility index (BVOL) is at an all-time low, indicating that the world’s leading cryptocurrency is in a period of low-volume and sideways trading.
Charles Edwards, founder and CEO of asset manager Capriole Investments, recently suggested that a big move is imminent for Bitcoin. He noted that historically, when Bitcoin breaks out of a period of extremely low volatility, the trend tends to last. This means that the next major directional move could be based on the current period of low volatility. Edwards also shared a chart which showed the 30-day annualized standard deviation of Bitcoin volatility, which is now at its lowest point in the past five years.
The lack of volatility is especially noticeable during the holiday season, when market trading is typically lower. Nonetheless, Bitcoin is currently stuck in a trading range centered around the $17,000 mark. Even despite macro triggers, such as the US elections and the ongoing economic crisis, the BTC price appears to be unwilling to move in any particular direction.
At this point, traders and analysts alike are debating when the breakout will come for BTC/USD and in which direction it will go. It is yet to be seen if Charles Edwards’ prediction of a big move brewing for Bitcoin will be correct.
In summary, Bitcoin traders are looking for volatility in the BTC price. Data shows that BTC is currently experiencing its least volatile period in history. Charles Edwards, founder of Capriole Investments, believes a big move is brewing for Bitcoin, and that the next major directional move could be based on the current period of low volatility.