The latest Bitcoin rally failed to reduce the volatility of the last 30 days, with the metric remaining at its 2-year lowest level.
Bitcoin Volatility 30-Days Has A Value Of 1.7%
As per the latest report released by Arcane Research, BTC’s price stabilizing around $20.5k has resulted in the daily volatility remaining low.
The “daily volatility” is an indicator that measures the percentage changes in the daily closing price of Bitcoin averaged over a specific period of time.
This time period can be any length but the seven-day or 30-day volatility are the most commonly used and usable version.
When the daily volatility has a high value, it means the crypto’s price has been observing large fluctuations recently.
However, the indicators low value suggests that the market is not as active in the recent past.
Here’s a chart showing the Bitcoin monthly and weekly volatility trends over the last year.
Source: Arcane Research's Ahead of the Curve - Nov 1, 2022| Source: Arcane Research's Ahead of the Curve - Nov 1, 2022
The graph above shows that the volatility of 7-day Bitcoin has been low for some time now. In addition, the 30 day version has seen a drop in recent days.
As a result, 7-day volatility increased by 2.2% in the week. However, this is still significantly lower than the 3.1% annual average.
After the monthly volatility’s recent decline, the metric has hit around 1.7%, a low level not seen since two years ago. It is because of the constant consolidation at $19k that crypto has observed.
While there has been some burst of activity recently, it hasn’t been enough to make a dent on this timescale.
A second contributing factor is the fact that Bitcoin, after the initial chaos increase, has fallen back to sideways movements, this time at the $20.5k mark. The 7-day volatility is higher now than ever, but it is still historical low.
At the time of writing, Bitcoin’s price floats around $20.4k, down 1% in the last week. In the past month, crypto has seen a 6% increase in its value.
The chart below shows how the currency’s price has changed over the course of five days.
The crypto's worth appears to have remained at or above $20k. Source: BitcoinUSD on TradingView| Source: BTCUSD on TradingView
Jievani Weerasinghe, Charts from TradingView.com and Arcane Research. Featured Image