Bitcoin (BTC) Analysis: Is Price Volatility Vacation Over?

Bitcoin's price volatility has increased, suggesting that its period of low fluctuations, termed volatility vacation, may be over. The Bitcoin Volatility Index (BVIV) has recently exceeded trendline resistance, indicating potential for further price turbulence. Analysts attribute this shift to changes in market flows, reduced liquidity, and ongoing macroeconomic concerns. Following a selloff on October 10 that saw Bitcoin's price drop significantly, traditional volatility sellers like OG holders and miners have retreated, diminishing their influence on price swings. This has led to a rise in demand for protective options as traders seek downside hedging. Additionally, market liquidity has weakened, making price movements more sensitive to large orders. As a result, Bitcoin could face higher volatility in the near term, amplifying price movements and uncertainty.

Source 🔗