Bitcoin Price Could End Day With Tightest Trading Range of 2018

The bitcoin market has gone comatose today with a key volatility reading hitting fresh yearly lows.

The daily bitcoin volatility, as represented by the spread between the daily price high and price low, currently stands at $84 - the lowest level since July 9, 2017 - according to CoinDesk's Bitcoin Price Index.

The spread was seen at $68. Assuming that this differential remains at $84 until 00:00 UTC hours, we can say that bitcoin's daily volatility has hit an 13-month low Friday.

The reading is of particular importance for traders as the drop in the volatility is often a precursor to the big move in prices.

The daily volatility jumped to $389 on July 10, after having hit a yearly low of $97.21 on July 8.

On similar lines, the daily range spiked to $850 on June 10, after printing a low of $107 on June 7.

Accordingly, we could be in for a big move in the next few days, possibly on the higher side as the technicals are biased toward the bulls and the BTC/USD shorts on Bitfinex are near record highs, meaning the cryptocurrency is vulnerable to a short covering rally.

All in all, the bitcoin daily volatility has hit 13-month lows at a time when the path of least resistance for bitcoin is on the higher side.

It seems safe to say a big bullish move is overdue.

CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.