Bitcoin volatility reaches five-month low as this technical indicator suggests that the asset is exhausted
According to Bloomberg's article, the 30-day volatility of the asset is currently moving at its lowest point since September in addition to the price action of the largest cryptocurrency staying negative. As the article suggests, it is"showing short-term exhaustion signals."In order to determine whether the asset's price movement is"exhausted," traders use the Demark Sequential indicator which acts based on the price's history.
The indicator is a technical analysis tool, which compares an asset's recent extremes with the previous period's equivalent price.The methodology allows traders to compare the current demand of the asset with previous periods and determine the directional trend on the market. Some traders compared Demark with the RSI indicator, but the two tools work different, with the RSI counting closing levels only when the abovementioned indicator includes both highs and lows of a specific period.