BTC Wires

Bitcoin Volatility is at Highest Since December 2018

Bitcoin prices are currently at its bulliest best, where it has gained over 120% from the start of the year. Bitcoin faced a tough time in 2018, right after peaking the highest price of around $20k. The bearish trends in 2018 cut 80% of the total Bitcoin market cap. However, looking at the positive side, many claimed that the longest crypto winter has cut down the volatility factor by a significant margin, and this is the reason several institutional investors have forayed into the crypto space in the last year alone.

2019 brought a lot of hopes and bullish sentiment even when the markets remained calm for almost three months. But, when the crypto market finally saw a significant wave of bullish price rallies starting from April, and since then, the prices of Bitcoin and major altcoins have seen significant growth.

Bitcoin prices have risen so sharply ever since the April surge that it has brought the volatility debate back into the crypto space. The volatility of Bitcoin has hit highest since December 2018, which is quite understandable given the rise sharp and falls in 2019.

The Rising Bitcoin Volatility

Bitcoin volatility has peaked in May averaging 4.5% against the 3.5% in April and 1.1% in March. The current volatility factor is the highest since December 2018. The data was published by Bloomberg Galaxy Crypto Index which confirmed the rise since the trading envelope bands –  the spread between upper and lower price range levels – widened significantly.

Bloomberg Intelligence analyst Mike McGlone explained,

“When volatility gets high it should be indicative of extremes in price. The market is getting a bit stretched here from a trader’s standpoint”

Bitcoin is currently moving at around $8,512 down by 2.40% in the 24-hour chart. It has broken past the $8,000 key resistance twice last week and was trading near $9,000 day before yesterday, having made a jump from $7,700 a day before. These significant jump in prices are surely indicating the volatility factor is on the rise again.