Crypto Market giving off Bearish Signal as Volatility Collapses

The crypto market volatility is crumbling while registering more volume than of 2017 before prices jumped. This is a sign of speculation leaving the market and price bottoming while the short term scenario is predicted to be bearish by Bloomberg’s senior strategist Mike McGlone.

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Crypto volatility collapses, looking to test year’s low

The crypto market is all quite. The price movement is almost negligible in the crypto market especially in Bitcoin that has stuck at $6,500 mark and keeps on maintaining its stability. This has been a while that the volatility has been going down and takes a serious dip.

Recently Bloomberg reported that its Bloomberg Galaxy Crypto Index has entered a new selling trend as the popular technical volatility indicators, Bollinger Bands signals decline further suggesting that September lows might get retested.

Since January peak, Bitcoin has dropped more than 65 percent while Ethereum, XRP, and Litecoin are down by over 85 percent, wiping about $600 billion from the crypto market.

Bitcoin and others managed to surge once in a while on the back of bullish news but failed to hold those profits. And now volatility collapses, registering record low.

However, the volume in the market is more than last year before prices skyrocketed as pointed out by the popular crypto trader, CryptoHustle:

2018 has more crypto volume than any other point in 2017 before the parabolic rise. https://t.co/UM6hnNKCsP

— ฿TF%$D! (@CryptoHustle) October 23, 2018

Recently, in an interview with CNBC, Mike McGlone, the senior strategist at Bloomberg Intelligence shared his bearish sentiments:

“Honestly, every day I try to find ways to say Bitcoin’s going to go up, or cryptocurrencies are going to go up, and the more I dig into the data that actually have driven price in the past, I see more indications it’s going to go lower…Of course, we can do anything. But based on the indicators I have, the prices should still go lower unless something shifts that I can’t predict, like some kind of fundamental thing.”

A few days back only, McGlone had also shared that the low volatility is

“a sign of speculation leaving the market and eventually a bottoming process. High volatility is a major factor lessening most cryptocurrency use cases for anything other than speculation.”

Charlie Morris, multi-asset head at Atlantic House Fund Management in London also shares similar sentiments but with a bullish wave in tow:

“It simply means the market is calm and in balance. That implies that speculative interest is low. Given this bear market is now 10 months old and is getting tired, I’d be inclined to be bullish for the next major move.”

In the short term, the market has Bakkt launch and it has been further believed Bakkt’s Bitcoin futures contracts will lead the approval of Bitcoin ETF by SEC. So, it’s to be seen in which direction prices move.