There have been more than a few bullish forecasts for Bitcoin since the bear market closed in early April. After that, the king coin kept up with an interesting rally, exciting the crypto industry, even pulling altcoins up with it.
Last month, Bitcoin successfully hit its current year-to-date high of $13,800 but only stayed there very briefly, almost immediately crashing as quickly as it rose. Since then, Bitcoin has pretty much struggled to keep up with the burst of the potential it initially showed a few months ago.
According to CoinGecko, Bitcoin is currently trading just a little over $10,000 and has had a pretty boring price movement over the last few weeks. However, it would seem that things are about to get interesting again.
The Bitcoin Historical Volatility Index
Just as the name suggests, the BVOL is basically a measure of Bitcoin’s historical volatility and on the day the coin hit $13,800, the BVOL jumped by 9.68 points from 4.38 all the way to 14.06.
After this level, however, it pretty much headed down and stayed there. Before this jump, the index dropped to 2.00 and consolidated there for up to a month. It seemed to move around a few times but nothing significant happened like the jump by almost 10 points within 24 hours. Based on history, the 2.00 level is an important one.
The index is currently still dropping and is beginning to approach 2.00 all over again. This is good news because that’s the exact point where some response from the coin is expected. Historically, the 2.00 level signifies a bullish near-future.
Expect a Bullish Response
Currently, Bollinger band movements point to the possibility that the coin’s 24-hour trading range suggests that the expected volatility just might be around the corner. Since there is a contraction in the bands with a narrow trading range, a falling wedge is now visible and is usually followed with a drop in volume and general thrust. This level shows that everything is now ripe for a bullish spike and all that’s left is for the bulls to finish it off.
