Alex Krüger, one of the well-known names in the world of crypto money and economy, bitcoinHe explained that a metric that has historically marked a phase of great volatility is starting to signal.
Koinfinans.com As we have reported, he shared his views on Bitcoin on his Twitter account. Alex Krugerannounced that it closely follows the BVOL index, which compares Bitcoin’s volatility over the past 30 days with its annual ‘time-weighted average price’.
According to Krüger, BVOL closing below 25 has historically come just before big moves.
“Every time BVOL closed below 25, we soon saw an explosive Bitcoin move. We moved up twice and down once (November 2018).”
The economist also warned investors that Thursday’s announcement of the US consumer price index (CPI) could be the key catalyst that ignites Bitcoin’s next wave of volatility in both directions.
Inflation is predicted to be 8.1% year-on-year, according to media reports, so a reading significantly higher or lower could sharply trigger volatility in BTC.
According to Krüger, the technical details of Bitcoin are looking quite positive and BTC is trying to make a break against the diagonal resistance line that has been around for almost a year.
The economist also shared a chart showing the relationship between Bitcoin and Nasdaq, noting the recent tight relationship between crypto markets and stocks.
“That’s incredible. Perhaps crypto traders should start hedging long-term with Nasdaq futures, not ETH or BTC criminals.”
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.