The Quiet Bulls Are the Best
Disclaimer: Your capital is at risk. This is not investment advice.
ByteFolio Issue 166;
Bitcoin has quietly returned to a ByteTrend Score of 5 and is poised to break higher. Crypto feels so quiet, yet ByteFolio is just below its all-time high, and Bitcoin is ready to move. As I keep on saying, the quiet bulls are the best.
Bitcoin
In recent months, I have mentioned Bitcoin’s declining volatility on several occasions, particularly in relation to Bitcoin’s increased weight in our BOLD Index. The weighting is constructed using 360-day volatility, which is falling because shorter-term volatility is also falling.
Bitcoin periods of low volatility always led to substantial rallies, and the set-up for the next one is looking good.
Bitcoin Volatility
Contrast that with gold’s volatility using the same measure. Long and short-term volatility is rising, which implies higher risk ahead. It doesn’t mean the bull is over, but it is certainly riskier than it was.
Gold Volatility
It is all going to plan, and I would expect the need for alternative safe havens to rise. Bitcoin is riskier and becoming less risky, while gold is less risky and becoming riskier. That is the right way around and will attract more institutional investors in the coming months.
Prepare for Uptober, Bitcoin’s strongest month. It’s not far away now.
