Bitcoin Price Volatility Hits Lowest Level In Nearly 2 Years

A three-month long bitcoin price squeeze could be nearing an end, with a key volatility indicator reaching its lowest level for 21 months.

The leading cryptocurrency has charted lower price highs and lower price lows since the end of June and the lack of strong direction bias has both bulls and the bears waiting on the sidelines.

As a result, volatility as represented by Bollinger bands width - a technical analysis tool derived from +2, -2 standard deviations of a price's moving average - has hit the lowest level since December 2016.

When measured by standard deviation across all exchanges, volatility is at the lowest since July 2017, according to Bitcoinity.

It is worth noting that an extended period of low volatility usually paves way for a strong directional bias, meaning bitcoin could soon witness a big move in either direction.

Further, the oscillator is showing that volatility has steadily declined over the last nine months.

It seems safe to say that a spike in volatility is overdue and going by the moving average studies on the long-term charts, it could happen on the downside, that is, the pennant support could be breached.

The bearish cross has gained more credence, courtesy of BTC's drop from the weekend high of $6,841 to the previous day's low of $6,325.

View Bitcoin price volatility could rise sharply in the next few days.

The technical studies are calling a downside break of the pennant pattern, in which case, the June low of $5,755 could come into play.