Bitcoin price Volatility Returns: Here's What We're Watching
For the last few weeks or so, we have been watching the bitcoin price to try and get in and out of the markets according to our intraday breakout strategy. For a variety of reasons, action in the bitcoin price has been relatively muted, and this has made it very difficult for us to execute our strategy effectively. Without sharp and considerable movements in either direction, we were regularly chopped out of our entries. Luckily, we used quite a tight stop loss on the majority of our trafes, and so the losses we took on these losers was not enough to render our account untradeable.....
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Since its birth in 2008, financial experts and institutional investors have criticized the viability of Bitcoin as an independent currency, due to its highly unstable volatility rate. According to data provided by the Bitcoin Volatility Index, however, the volatility of bitcoin price against major currencies such as US Dollars have declined significantly since 2010. More importantly, the rate of volatility has decreased at a consistent pace, dropping at an average rate of 25% per year. At the beginning of 2011, the standard deviation of daily returns (volatility rate) recorded around 8.5%.....
Late yesterday evening, we published our twice-daily bitcoin price watch analysis piece. In the piece, we highlighted a few of the key levels we would be watching throughout Thursday evening, and suggested some of the potential entry points and target points in the bitcoin price overnight. Now action has matured throughout Thursday evening, we are about to enter a fresh European session. With this said, what are the levels that we are watching during this European session, and how can we take advantage of any volatility in the bitcoin price over the weekend? Take a quick look at the chart.....
At the end of last week, we reported that we had seen quite a lot of volatility in the bitcoin price, and that - as a result - we were switching our strategy from an intra-range to a breakout. Over the weekend, we've seen more of this volatility, and as such our strategy going into today's session is unchanged. With this said, the parameters that we are looking at are slightly different from those which we were keeping an eye on on Friday. So, moving forward, what are the levels that we are watching during today's session, and where can we look to get in and out markets according to our....
Once again, we enter a fresh weeks' trading in the bitcoin market. Its been a strange few weeks, and with all the volatility we have experienced, it would be easy to say lets just sit out of today's action and wait until things settle down a bit. No fun in that, however. Volatility brings breakouts, and breakouts bring us entry signals. It might be getting difficult to form a directional bias, but that doesn't mean we cant predefine our levels and let price action dictate our entries. So, with this said, and as we head into today's European session, what are the levels we are watching in....
Volatility, volatility, volatility. That's all we seem to talk about these days. The bitcoin price has moved more in the last few weeks than it has in the last few months, and while this has given us plenty of opportunity to draw profit from the market on our intraday strategy, we have also been chopped out on more than one occasion. This said, that's why we use stop losses, so we needn't complain. We are now heading into the final weekday session, and things are looking as if we are going to get a continuation of the action we've seen as late. So as we kick off the day, what are the....