Bitcoin's Record-Low Volatility Signals Potential 30% Price Swing Ahead

Fundstrat analysts have observed that Bitcoin's (BTC) 30-day volatility is at historic lows, a signal that has historically been followed by a significant price movement.

In a recent note to CNBC, Fundstrat's Head of Online Assets Strategy Sean Farrell noted that the median absolute move over the subsequent 60 days in prior low-volatility periods was roughly 30%, with half higher and half lower.

The current calm period is causing some analysts to speculate about the potential for a major price swing. However, Farrell warned that this bounce should not be mistaken for the beginning of a long rally, as similar cycles of short covering in early June and July initially lifted prices before the gains eventually faded.