Bitcoin Continues to Ride Area of Support; Volatility Still Low

Not much has changed for BTC in the most recent seven days, or the most recent three months for that matter. BTC prices remain range-bound, and at just south of $20,000, is trading almost identically to its June price level.

One of the more interesting themes for bitcoin in 2022 has been the lack of volatility in overall BTC daily price movement.

Prices are down approximately 3% for October, having opened the month at $19,400 compared to its current $19,100

BTC appears to be firmly entrenched along a line of support, with little impetus to break outside the range in either direction. Using the Volume Profile Visible Range (VPVR) tool to measure BTC trading volume by price illustrates this.

Measuring from the beginning of 2022 highlights a “high volume node” (indicating an area of significant price agreement), at the $19,300 level.

Incorporating VPVR with BTC’s Bollinger Bands shows additional areas of high agreement at prices that coincide with bitcoin’s upper and lower bands. Bollinger bands are a technical indicator that measure an asset’s moving average (often the 20 day), and calculates two standard deviations above and below that price.

BTC now appears poised to continue trading in a range between approximately $18,600 and $20,200. A slight bullish divergence appears to forming as momentum has recently accelerated at a faster pace than price.

Signals to monitor would be a bullish crossing of the 10-day moving average (currently $19,200) above the 50-day moving average ($19,800), but conditions don’t seem ripe for that at the moment.

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