The host and cryptocurrency analyst of the crypto-focused YouTube channel InvestAnswers, who prefers to remain anonymous, highlighted an important indicator that suggests Bitcoin (BTC) could be on the verge of a significant bull run. According to the analyst, a volatility indicator that has worked six times in the past and has never been wrong so far has once again sounded the alarm, predicting a major price surge in BTC to follow.
The Volatility Indicator Has Never Been Wrong
The anonymous host and cryptocurrency analyst of the crypto-focused YouTube channel InvestAnswers, closely followed by the crypto world, referred to a graph from crypto data company Glassnode indicating that Bitcoin’s volatility is at its second lowest level on record, signaling the beginning of a bull market based on historical data.
According to the analyst, Bitcoin’s volatility is currently at a very low level, indicating a potentially profitable period of patience for investors. The analyst expects that investors who weather this period with patience will achieve significant gains.
The analyst pointed out that previous periods of low volatility were followed by significant increases in Bitcoin’s value, citing the example of the largest cryptocurrency skyrocketing from $3,000 to $20,000 in 2017 when volatility was so low. According to the analyst, other periods of low volatility followed by price increases, apart from 2017, were recorded in May 2016, April 2019, February 2013, and November 2020.
The Current State of Bitcoin
At the time of writing, Bitcoin is trading just above $29,000, with a 1.44% decrease in the past 24 hours. Over the past seven days, BTC has lost 1.35% of its value, and in the last 30 days, it has lost over 5% of its value.
While some market analysts believe that Bitcoin is on the verge of a sharp decline, the anonymous host of InvestAnswers believes that these declines will eventually lead to an increase and that the low volatility in Bitcoin potentially sets the stage for a significant price surge.
