Bitcoin Volatility Spike [BEARISH]
Something to keep an eye on at the moment is the recent and confirmed spike on the BVOL chart we have seen last week. Furthermore, the BVOL is now finding support at a very key level where if held could see Bitcoin volatility spike again here in the coming hours and days.
As we can see the Bitcoin bulls failed to make a lower low here on the chart which now forces one to become very cautious if you are a Bitcoin bull currently. Longer term everything on the BVOL still looks bullish for the price of Bitcoin but short term, a continued bounce in BTC Volatility could mean a further pullback in Bitcoin here in the coming days. I will be watching closely to see if the BVOL can close back below the light green support line line I have drawn before seeking any further longs.
The second scenario would be a spike up to our red downward sloping trendline that has rejected the BVOL 3 separate occasions on very significant time scales. This area would be an excellent area to begin buying Bitcoin again as well.
For now I will wait and see as it appears retail traders have now been woken out of their slumbers and their sudden irrational FOMO could be setting the table for one last nasty shakeout before Bitcoin decides to run to higher prices again.
Lastly, for the ultra bullish case, a break not just back below my light green support line, but ultimately below my yellow line at 64.44 basis points is the level that must get broken before the floodgates of liquidity can rain down on the asset again. This last check box would almost certainly mean a likely revival of the Bitcoin bull market again.
As we can see the Bitcoin bulls failed to make a lower low here on the chart which now forces one to become very cautious if you are a Bitcoin bull currently. Longer term everything on the BVOL still looks bullish for the price of Bitcoin but short term, a continued bounce in BTC Volatility could mean a further pullback in Bitcoin here in the coming days. I will be watching closely to see if the BVOL can close back below the light green support line line I have drawn before seeking any further longs.
The second scenario would be a spike up to our red downward sloping trendline that has rejected the BVOL 3 separate occasions on very significant time scales. This area would be an excellent area to begin buying Bitcoin again as well.
For now I will wait and see as it appears retail traders have now been woken out of their slumbers and their sudden irrational FOMO could be setting the table for one last nasty shakeout before Bitcoin decides to run to higher prices again.
Lastly, for the ultra bullish case, a break not just back below my light green support line, but ultimately below my yellow line at 64.44 basis points is the level that must get broken before the floodgates of liquidity can rain down on the asset again. This last check box would almost certainly mean a likely revival of the Bitcoin bull market again.
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