As a historical volatility indicator flashes a rare warning signal, the price behaviour of BTC may remain calm until October 12, claims one expert.
According to TradingView data, BTC/USD was trading at about $19,300 at the time of writing. Over the weekend, the duo maintained a tight range, with a single test of $19,000 punctuating otherwise flat circumstances.
Michal van de Poppe, founder and CEO of trading business Eight, said that traders may be granted an additional 48 hours of tolerance, given that the next week is anticipated to offer significant fuel for a possible volatility breakout.
Van de Poppe reaffirmed that when Bitcoin’s movement occurs, it will be “extremely large.” He made reference to the Bitcoin historical volatility index (BVOL), which is now at historically low levels. In part of an explanation tweet, he stated, “Historically, this is a certain formula for tremendous volatility.”
In the meanwhile, the 13th of October was the most important day of the week for analysts, as the September Consumer Price Index (CPI) report was expected in the United States.
At the time of writing, U.S. stocks were mostly stable, with the S&P 500 down 0.6% and the Nasdaq Composite Index down 1.0%.
Continuing, the on-chain analytics site Material Indicators said that macro data will trigger consequences for both market involvement and volatility.
“Reports on Earnings, CPI, Unemployment, and Retail Sales will drive a spike in both of these crypto market measures,” it tweeted that day.
The inventor of Material Indicators, Material Scientist, indicated in a recent article that volatility and the volume of transactions had reached one-year lows.
In a further indication of an impending storm, the U.S. dollar index (DXY) was once again gaining momentum on the day, having regained significant ground after reaching its highest levels since May 2002.