Bitcoin Primed for Big Price Swings as Volatility Hits Multi-Year Lows
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Bitcoin's Bollinger Bandwidth (BBW) on weekly charts recently hit lows not seen in years, signaling impending volatility.
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BBW calculates volatility by comparing spread between upper/lower Bollinger Bands to the 20-week moving average.
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Low BBW, like the recent 0.20 level, has preceded big volatility spikes in Bitcoin's price historically.
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Volatility is mean-reverting - long periods of low volatility lead to eventual violent price swings.
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The longer Bitcoin's volatility stays low, the more dramatic the eventual breakout in either direction.