Beginners Guide to Bitcoin Trading. What is Volatility Index?

Bitcoin Trading For Dummies: Volatility Index


Hello Bitcoiners! In today’s episode, we will talk about the Bitcoin teapot formation and the Bitcoin Volatility Index This is eugene here and today is the 23rd of january I would like to take this opportunity today to talk about the bitcoin price chart, especially the teapot formation that some people online are talking about so i refer to the coinbase bitcoin price chart

This price chart, I will spand it as far back early as possible that i can I believe, as you can see here it is since 2013 The first bitcoin halving was before that But since the bitcoin halving, the price did go up to 214 and then it came down here as you can see to somewhere in the same year it went up 292, came down a bit and once it past the all-time high of 214, it then pounced all the way up to a new all-time high all the 1100+ So as you can see this massive rally was easily five times more than the previous all-time high although 214

Now, it’s interesting to note that before that rally before it exceeded the first all-time high of hundred and ninty-five there was a slight consolidation before exceeding that all-time high ok, so this sort of like a U- shape that you see here, it’s what some people refer to the bottom of the teapot and once you have that snout coming out it actually exceeded that I decide on the teapot and there you have to price shooting up so will we see a repeat of this formation? Well, with this past all-time high kind of all time I over 1200+ , price then went down and it went to as low as a 200+ in the beginning of last year and price slowly recovered as you can see and currently it is consolidating at about 920+ So as you can, see from the last all-time high to where it is now it is again forming that U shape and as what people say, the bottom of the shape of the teapot Now is this actually going to be a repeat of the last teapot? well it’s very hard to say But even assuming it is then we should be going into a small consolidation and after which following the last trend then it would slowly climb up and ultimately over some time, hit the resistance of the last high of 1100+ and once exceeding that all-time high then we should see an extreme bull rally very high so now the thing is, is it going to explode like the last run that we saw in November of 2013 well it’s very hard to say but i would not think that this rally would be like five times of the previous at all times not as much as a five times well don’t quote me for it but one thing’s for sure the volatility of bitcoin has been reducing every year

Okay, so talk about volatility, let me refer to a website called BTCVOL

INFO ok, so on this website it shows the Bitcoin Volatility Index that we have over the years and as you can see on this site, i referred to the 30 day BTC-USD volatility So as you can see the Volatility Index actually every year, say for example in a year 2011, it has been as high as 15, in terms of deviation, but that Volatility Index has been reducing and currently is as low as 5% Ok as you can see here In fact, i would use this Volatility Index graph, just to explain to skeptics that say that “Hey bitcoin is Suppose to perform like a currency” but it’s so volatile!” But the thing they fail to understand is that, actually the volatility every year has been reducing ok so as you can see the volatility of becoming in a year 2013 was high It was up to fourteen percent

But for the next, for this year and even next year or so, if let’s say, going back to the price chart, if the all-time high of 1100 plus price of Bitcoin has been exceeded I really doubt that the rally will be like, like what we saw in 2013 so how many times more would be would be a double or triple that of a thousand dollars well it it’s really hard to say about cost all this boils down to technical analysis, but again the technical as far as I’m concerned is hundred percent accurate As you know traders would make money out of the correct money management They can be correct in terms of prediction using technical analysis as high as sixty or seventy percent all the time but never hundred percent So that’s for the teapot formation and the Volatility Index that we’re going to discuss today So if you have any questions do post below

At this point let me now go into the Support and Resistance that we have for the current Bitcoin price So, I now refer to BitStampcom, the TradeView We have to be Bitcoin price here and the current price is at 922 at Bitstamp There was a drop in price yesterday all the way down to, 886

But immediately after that there was a bounce-back and currently that it is consolidating The consolidation is in between the range of nine hundred and twenty plus to a lower range of a 910 so it’s currently consolidating around that region However my 2 sets of indicators do show that that is actually on a slight rally now so I’m actually have sent a signal to my signal followers that we should be getting a light buy signal And the two sets of indicators i have would be the Moving averages and also Momentum indicators I’ll probably talk more about these indicators the next time

Now, as far as Resistance is concerned interestingly enough, before the yesterday’s which major retracement we did have a Resistance wall at, as you can see, 950, but after the retracement, the wall is still there

Resistance climb would still be at 950 at least over at the Bitstamp market However after this 950 breakthrough then we will have a very shallow hike to all the way up to 1,000 Ok, that’s at least that’s what we see it the seller list in Bitstamp That’s all i would like to share for today as far as Bitcoin price concerned If you’re interested in receiving more accurate signals to check out on my facebook business page

The links are right at the bottom of this Youtube video It is listed in the description If you have not subscribed to my Youtube Video Channel, please go ahead and share it if you can Have a great week ahead! Bye

About the Author Dancake

Hey hey hey. It’s Ville and welcome to my blog. I am a tech enthusiast and always looking for ways to generate new income streams. At the moment Bitcoin cloud mining is one of the most promising ones and that’s why I created this website. Hope you like your stay. If you want a quick start guide about making passive income with cloud mining check out this guide.