Bitcoin

Huge Volatility Incoming for Bitcoin Soon, Will the Crypto Space Revive the Bull Market in 2022?

Author: Qadir AK

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Author

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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Highlights
  • As per the popular On-chain metrics, Bitcoin market may manifest huge price variation and hence the crypto space could be due for a massive price action soon

  • The bulls who have refrained themselves from undergoing a notable upswing could soon enter the space and uplift the price high

The crypto markets have remained relatively calm in recent days, with no significant price movements in either direction. Each time new inflation rates are announced, the market suffers. Since then, the price of Bitcoin has been on a roller coaster, displaying a wide range of price movements in a short period of time. 

However, according to a recent update, Bitcoin and the other cryptos in the space appear to be due for a significant price increase. Volatility is expected to rise sharply, lifting the entire crypto space above bearish captivity. 

According to a new Glassnode report, the BTC price is primed for volatility as both realized and options are at record lows. 

Bitcoin price realized volatility does not normally reach rock bottom levels because it frequently maintains a high volatile move. As an example, the report recommends the 1-week realized volatility chart below, where the value of the 1-week rolling volatility dropped by 28% during the bear market. In such a case, the upcoming price movements could be either north or south. 

The adjusted spent output profit ratio (aSOPR), which measures the average profit or loss for multiple coins spent on any given day, shows a similar compression. The levels have risen and are approaching the break-even point of one from zero, indicating that massive volatility is on the horizon. 

After an extended period of consolidation, the crypto space may awaken. Following a massive accumulation of strength, the Bitcoin(BTC) price skyrocketed, causing a domino effect on the other altcoins as well.

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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