The BTC price volatility index is at a potential downward reversal on April 20-21.
This does NOT mean that#BTCwill go to a range from the current rate. After all, the index remains at almost 12 and needs time to decline. BUT this potentially means that BTC volatility may decrease in the coming week. And we will not see strong (at least stronger than in April) impulse movements in growth or decline.
Let us remind you that we analyze the Bitcoin Historical Volatility Index, focusing on the methodology of Thomas DeMarco. Because we consider it one of the best tools for analyzing this Index, which has shown itself well over time (vertical levels on the chart have predicted reversals in the past). Neither moving averages, nor patterns, nor trending ones provide as much benefit on this chart.
In addition to DeMarco's candle counting method, on this chart we also focus on RSI and MACD on the daily time frame. And they, by the way, just allow for the possibility of the Index reversing downwards.
Are there exceptions? Yes, but not so often. The last one happened quite recently in mid-March, where, from March 14, the Index’s upward reversal occurred “unplanned.”
