{"id":412112,"date":"2020-01-23T21:00:17","date_gmt":"2020-01-23T21:00:17","guid":{"rendered":"https:\/\/wncen.com\/?p=412112"},"modified":"2020-01-23T17:12:15","modified_gmt":"2020-01-23T17:12:15","slug":"bitcoin-reaches-logical-support-as-volatility-wanes-explosive-move-incoming","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/bitcoin-reaches-logical-support-as-volatility-wanes-explosive-move-incoming\/","title":{"rendered":"Bitcoin Reaches \u2018Logical\u2019 Support As Volatility Wanes, Explosive Move Incoming"},"content":{"rendered":"

After Bitcoin<\/a> price rocketed last month from lows around $6,400, the crypto asset touched over $9,000 before falling lower to what a well-known financial market analyst says is \u201clogical support.\u201d<\/p>\n

Meanwhile, a tool designed by the analyst suggests that volatility in the Bitcoin market is reaching bear market lows, potentially signaling that an exceptionally explosive move could be incoming soon.<\/p>\n

Bitcoin Volatility Disappears, Explosive Moving Incoming To Shake Things Up Again<\/h2>\n

Bitcoin<\/a> and other cryptocurrencies are known and even infamous for their volatility relative to other financial assets.<\/p>\n

The increase in volatility is due to the fact the technology is extremely new, hasn\u2019t proven their use case, and is more for speculation currently than anything else.<\/p>\n

Related Reading | How Bitcoin\u2019s Recent Downtrend Could Have Tripled Your BTC Stack<\/a><\/strong><\/em><\/p>\n

Volatility can be measured in a variety of ways, but well-known financial market analyst John Bollinger created a technical analysis indicator that measures an asset\u2019s price in relation to the volatility the asset has been experiencing.<\/p>\n

The aptly named Bollinger Bands<\/a> expand and contract as volatility picks up or wanes in an asset like Bitcoin<\/a>.<\/p>\n

https:\/\/twitter.com\/york780\/status\/52509446?s=21<\/p>\n

According to a tweaked version of the tool that measures just the width of Bollinger Bands (pictured below), the indicator suggests that Bitcoin\u2019s volatility has dropped so low on weekly timeframes, it\u2019s reaching levels not seen since late September or early October when Bitcoin was ranging before the late October, record-breaking \u201cChina pump.\u201d <\/a><\/p>\n

Before that, volatility reached this low in March ahead of the April 2019 rally breakout.<\/p>\n

Volatility could even reach dangerous levels not seen since before Bitcoin\u2019s deep November 2018 drop to $3,000. When volatility drops so low, it often suggests an extremely large move is ahead \u2013 one that revives the volatility for days and weeks to come.<\/p>\n

\"bitcoin<\/p>\n

Crypto Asset Reaches Logical Support, Says Creator of Bollinger Bands<\/h2>\n

Even the indicator\u2019s creator, John Bollinger, says that using the tool, it appears that Bitcoin<\/a> has fallen to \u201clogical support\u201d at the mid-BB line. The mid-BB line often acts as a support for assets that have previously passed through the mid-line.<\/p>\n

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This is a 'logical place' for $btcusd<\/a> to find support, a pullback to a breakout level and the middle BB.<\/p>\n

— John Bollinger (@bbands) January 23, 2020<\/a><\/p><\/blockquote>\n