Home Analysis Crypto Weekly Byte: Market Remains Sluggish As Bitcoin Volatility Reaches 22-Month Low

Crypto Weekly Byte: Market Remains Sluggish As Bitcoin Volatility Reaches 22-Month Low

October 29, 2018 12:57
Share with your friends

The crypto winter continued this week, as most cryptocurrencies hardly moved. In fact, none of the top 5 cryptocurrencies changed by more than 1% in a 24-hour period over the week. Although the week had some significant events and news, none of them had an effect on the price. The total market cap went sideways between $208 Billion to $209 Billion. This lack of movement is affecting short-term traders significantly as there are no opportunities to both short and long. However, for long-term traders, stability could be seen as signs of a bull run in the coming months.


As pointed out in our previous week’s analysis, Bitcoin is still moving between $6,450 to $6,650. However, after touching $6,450 we expect a short reversal to above $6,550. If it breaks the downward trend-line, the next resistance is at $6,650. Bitcoin went down buy 2% in the last 7 days. As CME’s futures settled last weekend, it had no effect on Bitcoin’s price.

With the price not moving much, Bitcoin dominance also remains unchanged. It moved from 53.71% to 53.73%, changing by just 0.02% in the last 7 days. Market dominance remains the same for other cryptocurrencies also.

With the price stability, Bitcoin has been more stable than the stock market in the past few weeks. In fact, Bitcoin’s 30-day volatility index fell down to 1.14%, the lowest in 22 months. The index calculates volatility using the standard deviation of bitcoin’s daily open price over 30 days. The last time Bitcoin’s volatility was this low was in December 2016. Also, the 120 days volatility and 252 days volatility is down to 2.64% and 3.56% respectively.


Ethereum has also managed to maintain its price like Bitcoin, and even stay above its support. As Bitcoin fell below $6,500, Ethereum managed to float above $200. Ethereum also managed to maintain its price above its support at 0.031 BTC as pointed out by us.


While the bulls did not win after the trend lines met, a push below 0.068 mBTC had a significant pushback. XRP surged to 0.074 mBTC in a few hours before falling back. It is now trading between 0.07 mBTC and 0.072 mBTC. Traders may choose to remain on the sidelines for bigger price swings above these lines.

Bitcoin Cash

Bitcoin Cash continued its decline this week, falling from 0.07 BTC to 0.0675 BTC. We asked our readers to short at 0.07 BTC, and take profits at 0.066 BTC. However, a new support may have been formed at 0.0675 BTC, and we’d recommend our readers to take profits now. Set more short orders if the fall continues.


Litecoin broke free of its free fall this week. A new downwards trend-line has been formed, which just slowed down the fall. However, the fall still continues. Litecoin lost nearly 3.5% of its value against Bitcoin this week, and we expect it to lose another another 2-4% this week.


Please enter your comment!
Please enter your name here