The average daily trading of the world’s most popular cryptocurrency, Bitcoin, reached its lowest average 24-hour range in almost two years – at $85. The 24-hour range is the average difference between a typical day’s high and low price in a month, and the last time it was this low was in April of 2017.
The average daily volatility, another metric for the average trading range, has recently decreased at a faster rate compared to the market prices of bitcoin. Volatility has now returned to the levels observed in September of 2017 when the price of bitcoin was around $1000.
Foreshadowing a Rally?
Nonetheless, low volatile periods usually happen before a big jump up or down in the market, just as was the case in 2017. April 2017 marked the time when bitcoin embarked on its biggest bull run since 2013. After April’s $32 daily trading range, bitcoin’s price shortly after climbed by 65 percent with $153 as its average trading range. This is in fact almost four times the trading range of the previous month.
After a long downward trend throughout 2018 and into 2019, bitcoin is now testing its previous high as it did in 2017. If this technical barrier is broken, it could be a sign that the shift in the bitcoin price trend would shift to a bull market. Let’s all hope for the bullish case!