Recent data suggests that Bitcoin’s (BTC) 30-day volatility 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 the reading is bullish for the leading cryptocurrency. Let’s see which reading currently has better chances.
How is BTC’s volatility developing right now?
Volatility measures the change in the price of an asset during a specific period. Most people by now will know that Bitcoin has high volatility compared to most traditional assets.
Thus, at this time the 30-day volatility of Bitcoin has reached an almost record low, registering a standard deviation of only 0.85%. The last time it held steady was in January 2013 and April 2016, before it ran unprecedented runs to achieve several 1000% gains. All this in the space of a year (or two).
To be able to contrast it, Buy Bitcoin Worldwide has pointed out that even gold has an average standard deviation of 1.2%. However, it is not clear if that is a reading of the same time span as that of Bitcoin.
What does Willy Woo say about it?
As we mentioned earlier, prominent cryptocurrency market analyst Willy Woo remains bullish on an incoming bull market. Woo theorizes that the current pressure will inevitably lead to a capitulation of the bears.
The analyst insists that buyers are propping up the price. “Note that volatility hitting lows also means that buyers have established a floor in the spot markets as they accumulate. This stops the downside movements and reduces volatility, ”Woo said.
After all, Bitcoin has been holding above $ 10,000 for a record number of days as reported by CryptoTrend a few days ago. This can be interpreted as a signal to the bulls, according to which a large accumulation can be expected. That is, it would be the calm before the storm.
Therefore, in the coming days we cannot lose sight of the Bitcoin whale activity. These are important players especially in contexts where accumulation does its thing, before entering a bull run of greater or lesser magnitude.