Bitcoin Intraday Volatility Explodes, But Historically Is Only Just Getting Started

Tony "The Bull" Severino

4 years ago

3 mins read

bitcoin explosive volatility bollinger bands

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Bitcoin price is now once again trading around $20,000 and with it has brought about a surge in intraday volatility that the cryptocurrency market has yet to experience.

However, according to a volatility measuring tool, this trend is only just beginning and will result in an explosive ride to the next bull market peak. Here’s why it is “time to pay attention.”

Legendary Analyst John Bollinger Calls Top In Bitcoin… For Now

The leading cryptocurrency by market cap trading back around $20,000 has changed the game for crypto traders and investors significantly. Bitcoin is clearly in a bull market now, but even those experience strong corrections.

The November monthly close was a $6,000 full-bodied candle, marking the largest in the asset’s short history. The massive monthly close, however, is a sign of what’s to come. $6,000 moves per month will become the norm, which translates to equally sizable moves on shorter timeframes.

Intraday volatility is picking up significantly on all timeframes  | Source: BTCUSD on TradingView.com

A perfect example arrived yesterday when Bitcoin was initially rejected from immediately below $20,000. The selloff caused a 10% and $1,800 drop within an hour, then not even three hours later surged $1,500 and over 7%.

The pattern produced, however, could be a “classic top setup” according to the creator of the Bollinger Bands himself.

OK, time to pay attention, $BTCUSD. That is a classic top setup. No confirmation yet and the setup could easily be overrun, but wise traders should wash their glasses.https://t.co/RKgTJje5IU

— John Bollinger (@bbands) November 30, 2020

Technical Indicator Creator’s Side Tool Says Volatility Is Yet To Come

This week has been wild in crypto markets. The leading cryptocurrency by market cap set a new price record, beating the 2017 high.

But rather than prompting immediate FOMO, it has caused the legendary creator of the Bollinger Bands, John Bollinger, to issue a warning about a potential “classic top setup” forming in Bitcoin.

The monthly Bollinger Bands and BB Width could shed light on where Bitcoin is in this market cycle | Source: BTCUSD on TradingView.com

But there was more to the story in terms of the chart Bollinger shared along with his warning to “pay attention.” In addition to his traditional Bollinger Bands indicator, he also included BB Width, which measures volatility and a tool called B% which shows where price action is in relation to the upper or lower bands.

Reproducing the legend’s chart sheds some light on where Bitcoin could be at during the currency bull cycle. Bollinger Band Width is only just now picking back up, after reaching historically low levels for the speculative asset.

As BTC becomes adopted, volatility is expected to diminish over time, however, peaks and troughs are still anticipated for years to come. Given how early it is for Bitcoin as an asset on a global scale, and BB Width only just now rising, volatility is about to bring shock and awe to crypto like never before.

Featured image from Deposit Photos, Charts from TradingView.com

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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