{"id":427673,"date":"2020-06-17T16:00:09","date_gmt":"2020-06-17T16:00:09","guid":{"rendered":"https:\/\/wncen.com\/?p=427673"},"modified":"2024-06-11T14:04:03","modified_gmt":"2024-06-11T14:04:03","slug":"bitcoin-volatility-bollinger-mercury","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/bitcoin-volatility-bollinger-mercury\/","title":{"rendered":"This Volatility Measuring Tool Is Signaling One of Bitcoin\u2019s Biggest Moves Yet"},"content":{"rendered":"
Bitcoin<\/a> price has been trading sideways<\/a> for 50 days now, preparing for its next major move. Due to how tightly coiled the price action is, volatility measuring tools are indicating extreme lows.<\/p>\n When volatility reaches such extremes, an explosive move often follows. With the metric touching one of the lowest points yet, Bitcoin may be gearing up for one of its most explosive moves ever. But when will this finally happen?<\/p>\n Crypto traders and analysts often talk of a “max pain scenario<\/a>,” in reference to what price action would cause the most confusion and trend-chasing.<\/p>\n This sort of price action would include fakeouts, Bart moves<\/a>, Darth Maul candles<\/a>, and many other devastating moves meant to shake traders out of position.<\/p>\n It also involves expecting contrarian moves to go against the herd mentality causing the most possible destruction.<\/p>\n Related Reading | Decision Time: Top Crypto Traders Expect Massive Bitcoin Move In Days Ahead\u00a0<\/a><\/strong><\/em><\/p>\n These shakeout moves serve to confuse traders and cause them to sit out until a decision is finally made. This leads to less trading volume and a decline in overall volatility.<\/p>\n Volatility tends to decline until it reaches an extreme low, at which a breakout will finally occur and as sidelined traders chase the breakout, volatility returns in a major way.<\/p>\n According to a tool that measures Bitcoin<\/a> volatility, the metric has hit an extreme low that when reached in the past has led to some of Bitcoin’s most explosive moves yet.<\/p>\n And with nearly two months of consolidation<\/a> after such a steep selloff during Black Thursday, and the asset trading just below resistance, the next move could be one of the largest ever recorded<\/a> in the cryptocurrency’s short history.<\/p>\nBoredom Strikes the Cryptocurrency Market As Volatility Declines to Extreme Lows<\/h2>\n