The BitMEX 30-day Historical Volatility Index, also known as the BVOL Index, measures the rolling 30-day annualized volatility of Bitcoin.
More specifically, this index utilizes the time-weighted average price (TWAP) of BTC/USD on a daily basis.
High BVOL values indicate increased price volatility for BTC.
Historically, when the BVOL falls below 25, a major spike in BTC price volatility tends to follow.
As of Oct. 17, the BVOL sits at 19.72, the lowest reading since Jul. 2020.
The previous three times the BVOL fell below 25, BTC experienced substantial price movements
- a 50% crash in late 2018
- a 240% move upward in the spring of 2019
- The initial move which kickstarted the bull run of 2021.
Furthermore, BTC’s open-interest leverage ratio currently sits at historic highs while its volatility has recently diverged from that of the VIX.
Both of these developments further suggest that a large move is brewing in crypto land.
Soon, there may be big actions.
There are so much information and recommendations, but still it is not easy to absorb the essential necessary parts and make it my own ones.
I cannot say which dirction we will have. Let's have own plan and do it one-by-one.
Source: Delphi Digital