Bitcoin Stuck Between 50 and 200 Day Averages

Bitcoin (BTC) continued to trade between the 50- and 200-day averages due to high volatility in the US bond market and sharp losses in Chinese stocks.

The leading cryptocurrency by market cap remained above $62,000, and Bollinger bandwidth, an independent technical analysis tool, fell to levels that saw downward price turbulence in mid-June.

Bollinger bands are volatility bands placed two standard deviations above and below the asset price’s 20-day simple moving average. Bandwidth is calculated by dividing the spread between volatility bands by the 20-period SMA. Rising bandwidth values ​​indicate high volatility, falling values ​​indicate the opposite. Explosions of volatility are often followed by long periods of low readings.

However, the bitcoin market shows no signs of such a situation, with prices oscillating in a narrow range between the 200-day simple moving average (SMA) resistance at $63,550 and the 50-day SMA support at $60,819.

According to TradingView data, the MOVE index, which measures expected volatility in US Treasury bills, increased by 24% on Monday, reaching its highest level since early January.

Increased volatility in Treasury bills, which play an important role in global collateral and finance, often leads to financial tightening and risk aversion. This potentially benefits the US dollar, which has an impact on risk assets such as stocks and bitcoin.

According to ING, the dollar index may rise to 103 by the end of the month. The index is stable at 102.45 at the time of writing this news.

China’s Shanghai Composite Index fell 4.6%, ending a ten-day winning streak.

Beijing announced a series of stimulus measures in late September, sparking a sharp rally that allegedly drew capital from other Asian stock markets and bitcoin.

Therefore, the decline currently seen in Chinese stocks could reverse the flow of money, supporting other regional indices and cryptocurrency prices.