Bitcoin is Set for a Massive Swing, Deadline Ends on Oct 12

Bitcoin volatility index claims that crypto yet bound to yet another session of declination

The Bitcoin price fell back below US$20,000, as the token struggled to move ahead of key resistances. The past couple of months have been extremely difficult for the crypto market, with the BTC price falling below 60% of its value, and ETH declining by 50%. Both, the top cryptocurrencies in the market have constantly demonstrated their volatile natures. However, despite the declining market values, both ETH and BTC have successfully garnered the attention of new institutional and individual investors. Long-term investors are quite familiar with the volatile nature of cryptocurrencies; however, the continuous financial threats have been dragging down the rest of the investors who joined the market to gain some serious profits. Recent reports, based on the historical data of the Bitcoin volatility index claim that it might not be the end. The token's present price movements denote a big move is approaching for Bitcoin, but this might not be good news!

A crypto analyst on Twitter mentioned that the Bitcoin index has considerably declined into a zone that is historically being followed by the crypto. The volatility index which is actually in question is the BitMEX.BVOL index. Based on the time-weighted average price, the BTC price is measured at 1-minute intervals for a period of half an hour. This index predominantly demonstrates that the current Bitcoin price actions have certainly changed from its average point, but it has become more volatile. The high-value metric reveals that Bitcoin has definitely shown some sharp movements but its volatility determines its poor impact on the crypto market.

So, is Bitcoin heading toward the worst-case scenario?

According to coinmarketcap, the Bitcoin price is revolving strictly between the US$18,000 to US$19,000 mark, and the case is quite similar for the BTC/USD token. Crypto market analysts believe that this state of prices will remain unchanged until the next CPI reports come in. However, it is safe to say that a new storm is brewing, and investors should be ready to prepare themselves for the next financial disaster. Previous predictions about the Bitcoin price claim that the token will fall below the US$10,000 mark before it embarks on its recovery journey toward the US$30k range.

Given today's scenario of the macroeconomic environment, the crypto prices are ought to fall further below. With the Federal Reserve tightening the interest rates to blow off the impact of the ongoing inflation, and the crypto market's strong relationship with the stock market, crypto investors are fleeing the market with hopes to retain some amount of their savings that they had previously invested on Bitcoin and other cryptocurrencies. In any scenario, the Bitcoin price will continue to plummet, so long as the macroeconomic conditions do not recover. Unfortunately, the mainstream adoption of Bitcoin has made it the target of several adversities and complex economic issues.

How do you need to prepare for the volatility?

Those who have been investing in cryptocurrencies are well aware of the various repercussions that a digital asset investment carries, however, Bitcoin has proved to be the worst crypto in terms of volatility. Experts suggest that emerging crypto investors should possess only 5% crypto investments in their portfolios, and diversify their investment options to ensure not to face adverse financial losses. For the time, the Bitcoin price is expected to not rise anywhere near the US$30k mark, however, since it is the most volatile token in the market, you never know what profits might the crypto yield in the coming days!