One thing which characterises every single bear market beginning in crypto is the higher volatility.
Below you can see the previous cycle tops compared to the current one based on the Historical Volatility Percentile, an indicator which tells us how high or low the current volatility has been in comparison to the past.
When the HVP is 90% it means that the current volatility is higher than usual.
When the HVP is 10% it means that the current volatility is lower than usual.
An interesting observation you will quickly notice is that the 2013 and 2017 bull market tops occurred both on high volatility, reaching values above 90% and sometimes even 100% for numerous days. Compare to the current cycle, Bitcoin has been going from only 0% volatility to 60% over the last 3 months.
This is highly unusual for bear markets and it’s another confirmation the TOP of this cycle for BTC has not yet been reached
Hope You found the Idea Helpful,
Until next time!
Below you can see the previous cycle tops compared to the current one based on the Historical Volatility Percentile, an indicator which tells us how high or low the current volatility has been in comparison to the past.
When the HVP is 90% it means that the current volatility is higher than usual.
When the HVP is 10% it means that the current volatility is lower than usual.
An interesting observation you will quickly notice is that the 2013 and 2017 bull market tops occurred both on high volatility, reaching values above 90% and sometimes even 100% for numerous days. Compare to the current cycle, Bitcoin has been going from only 0% volatility to 60% over the last 3 months.
This is highly unusual for bear markets and it’s another confirmation the TOP of this cycle for BTC has not yet been reached
Hope You found the Idea Helpful,
Until next time!
King