Bitcoin Technical Indicator Signals Big Moves With Some Traders Getting Ready to 'Sell Volatility'

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Bitcoin Technical Indicator Signals Big Moves With Some Traders Getting Ready to 'Sell Volatility'
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Bitcoin's Bollinger bandwidth suggests the top cryptocurrency could soon wake up from its slumber. Reports godbole17

Bitcoin traders will soon get the one thing they love the most: market volatility. That's the signal from a technical indicator called Bollinger bandwidth, which is used to gauge periods of high and low volatility and shifts in volatility trends.

Volatility is said to be mean-reverting, which means periods of high volatility are often followed by dour price action, while a low volatility environment usually ends with increased price turbulence. Bitcoin has been trading in the narrow range of 18,500 to $20,500 for nearly a month, CoinDesk data show.When anticipating a big move in either direction, sophisticated traders build a"net long volatility" portfolio so that their investment's value increases when the price movements become rapid.

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