There is no question Bitcoin’s price has been on a tear over the past couple of years. The cryptocurrency has been on a blistering ascent ever since its debut in mid-2009, with some great platforms on which to find extensive btc-robotics review pieces having long since been established too. And, its trajectory appears to be continuing as the price has risen even more dramatically this year.
But recently, the price has been moving in a rather concerning manner. Bitcoin’s spot price peaked in mid-November and has moved in an extremely volatile manner ever since.
Why Cryptocurrency Intra-Day Volatility is Great for Day Traders
There is no question the day traders need some extra help in their trade. And some of those day traders have been turning to Bitcoin in hopes of generating some income.
If you are one of those day traders, please bear in mind that Bitcoin’s day-to-day volatility is likely great for your trading. A rise in the spot price might be detrimental to the day trader, as it provides little opportunity for speculation.
Bitcoin’s day-to-day volatility appears to be turning some would-be day traders into day traders.
In fact, if you want to know how bitcoin trading day-to-day volatility is beneficial to day traders, check out this report by OneGramics.co.
Bitcoin’s Day-to-Day Volatility Has Already Gone Below 30%
One day before the Bitcoin price dropped to $550 on December 12, day-to-day volatility went as low as 30%.
That means, if you bought $2,500 worth of Bitcoin on December 12, that day-to-day volatility would have been around 30%. If you bought $2,500 on December 12, that day-to-day volatility would have been 25%.
But as I noted in my report on the day, the drop in Bitcoin’s price was already coming because some big hedge funds sold their crypto holdings for other investments.
That decline in the price also brings day-to-day volatility below 30%. It is back above 30% now, so day-to-day volatility has gone above 30% for a couple of days. But, it has fallen back below 30% for some time, too.
In fact, if the Bitcoin price does fall back to $550, day-to-day volatility would go down even further to the low teens.
But given the volatility of the cryptocurrency market, day traders might want to play it safe when they trade the Bitcoin price. They may not necessarily want to take such a big risk.
That said, day traders are just getting used to the day-to-day volatility. It seems highly likely, day traders will continue to trade the cryptocurrency and will do so in large quantities at all times.
This means, day traders now need to be prepared for day-to-day volatility.
Just look at the Bitcoin day-to-day volatility during the month of February. In February, the day-to-day volatility of the Bitcoin price was a massive 52%.
Are you a Bitcoin day trader? If you want to discuss day trading cryptocurrencies like Bitcoin with other day traders, you may join me on any popular Bitcoin Investing Forum.