Here’s What The Bitcoin Volatility Index Indicates For The Asset’s Price
Bitcoin continues to trade below $20,000 as it has been for a month now. As a result, all the other major cryptocurrencies, such as Ethereum, Cardano and BNB, are facing declines in their prices as well.
Currently, Bitcoin is selling at $19,416 after a fall of 0.02% over the last 24hrs. The immediate support level lies at $19,200 and the resistance level is positioned at $19,550 and $19,600. If the King currency manages to surpass $19,600, the currency can easily reclaim the $19,700 area too.
A well-known crypto analyst and trader is now drawing public attention towards one of the Bitcoin indicators, which is currently flashing massive volatility.
The analyst, Alex Kruger, informs his 146,200 Twitter followers that he is closely observing the Bitcoin Volatility Index (BVOL) which keeps track of Bitcoin’s 30-day volatility with the help of time-weighted average price (TWAP).
As per the analyst, whenever BVOL has closed below 25, Bitcoin has experienced huge movements. He also provided an example of Nov 2018, when the BTC price fluctuated massively toward the highs and lows.
CPI Report To Influence Bitcoin
Kruger believes that the upcoming Consumer Price Index (CPI) will play a major role in Bitcoin’s further price action. Here, it is speculated that inflation might fall at 8.1% year-on-year; hence, if the reading falls below or rises above, the target will see volatility in the crypto market.
Furthermore, the analyst claims that the King currency’s technical indicator is suggesting a positive outcome as BTC is making a strong move against a year-long diagonal resistance pattern.
Next, Kruger brings up a point related to the correlation between the Crypto market and Stock market, especially Bitcoin and Nasdaq. Displaying a chart, the analyst says that instead of going long with Ethereum or Bitcoin, one should opt to invest long with Nasdaq futures.