Bitcoin and Ether now less volatile than oil: Report

After 3 months of low volatility, the cost of BTC broke out and developed new highs before running into resistance once again and seeing a sideways movement.Historical BTC price momentum after low volatility. Source: XThe expert concluded that Bitcoins rate leaps out of lows after a period of low volatility to form an initially high, followed by another second high, while a 3rd one is made against the crucial resistance.

The Bitcoin (BTC) and Ether (ETH) 90-day price volatility struck a new multi-year low in August as the leading 2 cryptocurrencies continue to trade under their crucial resistance of $30,000 and $2,000, respectively.According to data shared by crypto analytic company Kaiko, the 90-day volatility of BTC and ETH hit 35% and 37%, respectively, making it less unstable than oil, with volatility of 41%. Such a decline in the cost momentum of the leading 2 crypto possessions was last seen in 2016.90-day cost volatility of Bitcoin, Ether and oil. Source: KaikoThe chart above shows that BTCs and ETHs cost volatility is over half than at the very same time last year. While August is considered a bullish month for the crypto environment, the decreasing price change is thought about bullish by many.Apart from the 90-day volatility at its most affordable in 7 years, the everyday Bitcoin volatility is likewise at a five-year low. Bitcoin daily volatility reaches 5-year low. Source: TradingViewA Bitcoin technical analyst who goes by the social networks name of “CryptoCon” took to the X platform to share observations about Bitcoins rate volatility decline and what actually follows the duration of low volatility. Related: Bitcoin speculators now own the least BTC since $69K all-time highsThe technical analyst kept in mind that Bitcoins rate went through a similar cycle of low rate volatility in 2020 before the booming market got; nevertheless, they warned versus the sideways motion of the top cryptocurrency. #Bitcoin volatility continues to decrease, which Ive revealed is bullish But the burning concern is, when does the sideways grind end?Upon thinking about I was advised of a time very comparable to now … pic.twitter.com/psO50vxUWD— CryptoCon (@CryptoCon_) August 16, 2023

Other Questions People Ask

What does the report say about Bitcoin and Ether's volatility compared to oil?

The report indicates that Bitcoin (BTC) and Ether (ETH) have reached a new multi-year low in 90-day price volatility, with BTC at 35% and ETH at 37%. This marks a significant decrease in volatility, making these cryptocurrencies less unstable than oil, which has a volatility of 41%. Such a trend is noteworthy as it reflects a period of relative stability for BTC and ETH, contrasting sharply with their historical price movements.

How does the current volatility of Bitcoin and Ether compare to previous years?

According to the report, the 90-day price volatility of Bitcoin and Ether is over half of what it was at the same time last year. This decline in volatility is reminiscent of patterns observed in 2016 and 2020, where low volatility periods preceded significant price movements. The current situation suggests that both cryptocurrencies are experiencing a phase of consolidation before potentially breaking out of their resistance levels.

What implications does low volatility have for Bitcoin and Ether investors?

Low volatility in Bitcoin and Ether can be interpreted as a bullish signal for investors, indicating a period of stability that may precede upward price movements. Historical data shows that after similar low volatility phases, both cryptocurrencies often experience significant price increases. However, investors should remain cautious, as the sideways movement observed could also indicate uncertainty in the market.

What factors contributed to Bitcoin and Ether's reduced volatility?

The reduced volatility of Bitcoin and Ether can be attributed to several factors, including market maturity and increased institutional adoption. The report highlights that this decline in price fluctuations is the lowest seen in seven years, suggesting a more stable trading environment. Additionally, the current resistance levels for BTC and ETH may be contributing to this stabilization as traders await clearer market signals.

What should investors watch for following this period of low volatility in Bitcoin and Ether?

Investors should closely monitor Bitcoin and Ether for potential breakout patterns following this period of low volatility. Historical trends indicate that after such phases, significant price movements often occur, either upward or downward. It's crucial for investors to stay informed about market developments and technical analysis insights, as these can provide guidance on when to enter or exit positions.