Bitcoin futures volatility is dying out as BTC/USD resumes the downside

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  • Bitcoin flirts with $6,400 amid low trading activity. 
  • Bitcoin futures weekly volatility slashed in half.

Bitcoin slipped below $6,40o amid uneventful Tuesday session. The digital coin No. 1 has resumed the downside after a failed attempt to break above a critical $6,460 resistance level created by the upper line of the recent channel.

Bitcoin futures volatility is nowhere to be seen

Despite a shallow recovery, the market remains depressed with volumes decreasing rapidly both on the spot and on Bitcoin futures markets. The weekly volatility for CBOE Bitcoin futures (XBT) dropped to 6.6% in October, which is less than a half from the average of 15.65% since inception, according to Kevin Davitt, senior instructor for The Options Institute at Cboe Global Markets.

“As it turns out, [bitcoin] XBT futures and cryptos, in general, are moving with very little speed. The week ending Oct. 26th was the least volatile since futures were introduced nearly a year ago,” the expert commented.

He also noted an interesting inverse correlation with equity markets, where volatility has been growing recently. Both CBOE and CME Bitcoin futures November contract gained 0.8% to $6,395 and $6,400 respectively.

Bitcoin’s technical picture

On the intraday chart, BTC/USD has entered a congestion zone of $6,400-$6,380 that includes a lower border of October consolidation channel. A sustainable movement lower will take us towards $6,336 (SMA50, 4-hour chart) and psychological $6,300.The next important support lies with $6,200.

On the upside, the first important resistance is created by DMA50 at $6,448. It is followed by the above-mentioned upper line of the recent channel at $6,460 and $6,700. 

BTC/USD, 4-hour chart


 


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