BTC Volatility Research and Use case of AI indicators — Demo Version
After BTC reach 31500 and fell back, the Price remained fluctuation in a small range most of the time. Sometimes the price moves up or down, but it immediately returns to the previous range.
This is the BTC Volatility Index(DVOL) provided by Deribit, which is a 30-day annualized implied volatility calculated through options data. It shows implied volatility for the period July 25, 2021, to August 7, 2023. The current DVOL is 34.68, which is the lowest point in the past two years and even a record low. It tells that the BTC price volatility is at a very low level.
This is the BVIN indicator on Glassnode. This indicator also shows implied volatility calculated from option data on Deribit. The yellow line in the chart is BVIN and the black line is the price of BTC. We have intercepted 2 years of data. Excluding two data bugs by Glassnode at the end of 2021, the current BVIN is 46.39%, the lowest in two years and even the ATL.
Historically, when volatility has remained low for long periods of time, it is an opportunity to make big profits. This can be demonstrated on the pump in January, March, and June 2023. In this case, you only need to identify the current trend and choose a good entry and exit point.
Next, we will introduce indicators — — Trend Sentinel Barrier
Trend Sentinel Barrier consists of two parts. The first part is the signal direction. The BUY and SELL signals will appear directly on the candles and you can judge whether you are bullish or bearish.
The second part is the support and resistance areas. When the price gradually approaches the upper and lower rails of the wavy area, it will gain support or resistance.
If you use Trend Sentinel Barrier, you will be able to capture trend profits and avoid getting out at the wrong time, becoming a profitable diamond hand.
Next, let’s take a look at the demo of Trend Sentinel Barrier on BTC
This is a candle chart on a weekly scale. The latest signal we can see was a BUY signal in mid-April. This means that we are currently in a bullish trend. Don’t feel sad for missing the signal because the price is now approaching the red wavy area. As we said in the introduction, the upper rail in the red wavy place will provide support. You can make a long position when the price is close to the red zone. Of course, if you already hold a long position in BTC, then you can also consider whether to increase your position. This is the advantage of the Trend Sentinel Barrier.
If the trend is already here, you still have a chance to catch the trend.
We will also bring more indicators and how they are used in the future, come and try to become a trading expert.
Disclaimer:
The indicators discussed in this article are provided for informational purposes only. They should not be considered financial advice or guarantees of trading success.
Trading in the crypto markets involves inherent risks, and it is important to conduct thorough research and analysis before making any investment decisions. These indicators are tools that can assist in technical analysis and identifying potential trading opportunities, but they do not guarantee profits or protect against losses.
The interpretation and application of these indicators should be done with caution and in conjunction with other analysis methods. Market conditions can change rapidly, and individual trading strategies may yield different results. It is recommended to consult with a qualified financial professional or investment advisor before making any investment decisions.
Sypool and its affiliates do not accept any responsibility for losses or damages incurred as a result of using or relying on the information provided in this article. Users of these indicators are solely responsible for their own investment decisions and should carefully consider their financial situation, risk tolerance, and investment objectives. Past performance is not indicative of future results.
