HomeTradingThe volatility of cryptocurrencies is decreasing

The volatility of cryptocurrencies is decreasing

Volatility in the cryptocurrency sector is falling. The trend that is characterising this beginning of September sees a collapse in volatility that on the thirty-day estimate drops to 3.1%, levels for bitcoin that have not been recorded since mid-May, which corresponds to the period followed by a rally that led to a doubling of prices in little more than a month. 

The current situation shows how the low volatility is a wake-up call that paves the way for an imminent explosive movement. Technically the last days have been characterised by quite depressing oscillations with the major cryptocurrencies alternating positive and negative days. Like in the case of today.

Source: COIN360.com

Today the sector registers a perfect balance between positive and negative signs, wit the former prevailing if we look at the first 20 of the ranking. Among the top 20, bitcoin is the one to score a +2.5% which is the best rise of the day. 

To find a more substantial rise it is necessary to go further down, in 22nd position occupied by Cosmos (ATOM) which rises by 20% and is projecting itself towards the breaking of the 3 dollars. This allows Cosmos to enter the ranking of the best 5 increases of the day. The first place is achieved by Metaverse ETP (ETP) which flies over 25% climbing to the 69th position with a market cap that is close to 70 million dollars.

On the other hand, the worst is GXChain (GXC), the only double-digit decline with an 11% drop. Then follows Algorand (ALGO), that despite the ambitious project recently launched in June, with today’s downturn and a further fall of 8% slips into 50th position and now records the all-time lows with prices close to 30 cents of a dollar and a drop of 87% from June 21st, when it was listed on exchanges. A very difficult moment for Algorand.

At 14.20 (UTC+1) the fork of Ethereum Classic (ETC) took place. After several postponements, today, at the 8.772.000th block, the hard fork Atlantis has occurred. The update aims to improve the Ethereum network providing more stability and higher performances. Ethereum Classic, despite the fork, does not detect any particular movement in the price, gaining just over 1%.

Bitcoin’s positive return to 10,500 dollars drags the total capitalisation over 263 billion dollars. The dominance of BTC goes back over 70%, reclaimed after 4 days. It is a positive signal that however returns to affect the market share of Ethereum that returns below 7.4% as well as Ripple that returns to touch the lows of the last two years. 

Ripple chart by Tradingview

Ripple in the last hours is testing the dangerous support threshold of 25 cents of a dollar. If violated, it would increase speculation that could again attack the downward movement of Ripple. XRP is in a delicate situation because of the controversy of the Ripple foundation accused of manipulating the prices of the token that since mid-August has been moving around the low levels it had abandoned back in December 2017.

Bitcoin chart by Tradingview

Bitcoin (BTC)

Bitcoin oscillates around 10,300 dollars but this does not change the technical structure of the last days of the bearish triangle, which is the only figure of reference in this particular phase.

Ethereum chart by Tradingview

Ethereum (ETH)

Same structure for Ethereum that continues to oscillate under 180 dollars without giving particular signals from an operational point of view. It is important for ETH to remain above 165 dollars and recover the 175 dollars and then go on to chase away the bearish clouds above 200 dollars. 

In the absence of these signals, Ethereum will continue to stay in this limbo that has been characterising ETH since the end of August.


Federico Izzi
Federico Izzi
Financial analyst and independent #trader – S.I.A.T. & Assob.it partner. He operates actively on stock and derivatives markets (futures and options) since 1997. A precursor of cyclic-volumetric analysis he is known for having identified the most important upward and downward movements in the financial markets of recent years. He participates annually as a speaker at the ITForum in Rimini since the 2010 edition and InvestingRoma and Napoli since the first edition of 2015. He is a guest and market expert on the "Trading Room" and "Market Driver" broadcasts of Class CNBC, Borsa Diretta.tv and on the evening news of Traderlink. Since July 2017 he is a permanent guest on LeFonti.TV, the only weekly national space dedicated to cryptocurrencies alongside the most important international experts in the field. He was interviewed as a cryptocurrency expert for Forbes Italia, Panorama, StartupItalia and DonnaModerna. He was recognized as the first Italian technical analyst to have published the first secular cyclic analysis on Bitcoin. Periodically publishes articles on ITForum News, Sole24Ore, MILANOFINANZA, TrendOnLine and Wall Street Italy. Federico Izzi is... "Zio Romolo".