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Bitcoin Flash Buy Signals After Last Week’s Rollercoaster

Bitcoin Flash Buy Signals After Last Week’s Rollercoaster
Nigerians beat CBN restrictions, trade N78bn Bitcoin in three months

The flagship Crypto has been rather calm since last week’s rollercoaster, which was sparked by the US jobs report and pushed bitcoin from $19,000 to $18,200 before soaring to $20,000 in value.

Even as it continued to fly above $19,000 in the early trading hours of Wednesday, bitcoin stuttered. The global crypto market valuation stood at $926 billion, a 1.11% decrease over the last day.

As of last week’s ending, bitcoin was more stable, even as the weekend saw little to no volatility. After being rejected at $20,000 late Friday, BTC dropped to $19,000 and traded in a range on Saturday and Sunday.

Bitcoin Flash Buy Signals After Last Week’s Rollercoaster

Ether took a little more difficult route, temporarily dropping below its current $1,300 support level before bouncing again later in the day. Recently, the second-largest cryptocurrency by market value was transacting just above $1,300, down 2% from Monday during the same period.

Other significant digital assets spent the majority of the day in a variety of losses, with XRP and ADA falling by roughly 3%.

The Crypto is still showing signs of lukewarmness despite U.S equity markets rising for the second day in a row, with the tech-heavy Nasdaq, S&P 500, and Dow Jones Industrial Average (DJIA) all up around a percentage point in response to positive third-quarter earnings releases from numerous major worldwide companies.

However, the BTC market seldom has a period of such low realized volatility, according to Glass node. The majority of earlier occurrences of this kind also came before a highly turbulent move.

In the 1-week realized volatility chart that follows, for instance, we can see that in a bear market, when the 1-week rolling volatility values fell below 28% (present values), this phase nearly usually followed major price swings in both directions.

Given the various indications, the markets for crypto derivatives are currently flashing reveals Bitcoin’s current extended spell of low volatility is unique.

While trade volumes have fallen to a multi-year low of $24 billion per day, the open interest in bitcoin futures has risen to an all-time high of 633,000 contracts.

Source: Nairametrics