The DVOL index reflects options investors’ expectations regarding the future price movements of $BTC and Ethereum ($ETH).
An analyst analyzing the DVOL index from account X stated that the DVOL index has fallen to approximately 35, its lowest level in the past year.
Historical data indicates that such periods of low volatility are usually short-lived, often followed by significant market movements.
Besides the Glassnode analyst, FXPro analyst Alex Kuptsikevich also shared his Bitcoin expectations. Speaking to Coindesk, Alex Kuptsikevich said he closely follows the key moving averages on the Bitcoin chart.
According to analyst data, Bitcoin is currently finding support at the 50-day moving average (around $76,000), while the 200-day moving average (around $82,500) previously acted as a resistance line.
At this point, the analyst specifically noted that a crossover of the two moving averages and a ‘Golden Cross’ are expected in the next few weeks. Generally, a “Golden Cross” is interpreted as a medium- to long-term bullish signal for Bitcoin.
However, the analyst also warned investors. He stated that which line breaks first could determine the direction of the cryptocurrency market, saying, “Which moving average line breaks first before the intersection could determine the direction of the cryptocurrency market in the next few weeks.” In other words, whether the 50-day support line or the 200-day resistance line breaks first will signal the difference between entering a bull market and facing further corrections.
*This is not investment advice.