BTC volatility continues to range and has even outlined a new downward structure. Returned to the level of February 2024. BUT the situation can change quickly.
The#BTCprice volatility index from our forecast of the end of the decline and the beginning of the reversal is in the range of 12 days. It happens rarely, it didn’t work for the reversal forecast.
Currently, the Index chart is in a state of uncertainty, which is also not a common occurrence. Let us remind you that we analyze the Index chart through the prism of Thomas DeMark's method. All reversal red and green lines on the chart screen are placed manually. It is easy to calculate that since October 2023, reversal signals have been processed late only 3 times out of 17.
In a situation where the Index goes into a range, it is difficult to make a forecast until a clear structure appears. BUT here's what we can say even now:
- In recent months, the range on the BTC Price Volatility Index chart has rarely been longer than 12 days. More often - about 7 days.
- The range on the Index chart always ends with a sharp surge.
Conclusion - a sharp surge in the volatility of the Index, a sharp movement in the price of BTC now and in the coming days can happen at any time. And you should prepare your positions for this.
Based on the expediency of focusing on the Index, this indicator does NOT provide reasons for the impulse movement of the BTC price. It is a marker interconnected with the price chart. WHICH, with proper analysis, can predict with an accuracy of up to a day when the price of an asset will give an impulse. The advantage of the Index is precisely the high percentage of signals processed from its chart.
The most striking examples of this year were in February:
- On February 7, we wrote that the price of#BTCis preparing a quick impulse. From this day on, the price increase over 8 days amounted to +23%.
- On February 26, we wrote again that the price of#BTCis preparing a quick impulse. From this day on, the price increase over 17 days amounted to +44%.
It depends on everyone, but for us, a tool that is capable of predicting the day of the price impulse with such accuracy is a must have.
