TechFlow News, July 20, according to CoinDesk, the Bitcoin 30-day implied volatility index (BVIV) is currently hovering within the 34%–38% range. This range has repeatedly become a precursor to volatility explosions in recent years, accompanied by significant price declines, and the market needs to be wary of "volmageddon" (volatility surge) risks.
Historical patterns show:
- After BVIV touched this range at the end of May this year, Bitcoin fell from $74,000 to below $60,000 in less than a week
- Similar signals appeared before the crash in early February this year and the pullback after the October historical high
The current BVIV is below the 30-day and 200-day moving averages, implying volatility is relatively "cheap" and at a historically reliable support level; mean reversion characteristics suggest there is upward pressure on subsequent volatility.
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