Volatility Is Coming

Gm friends, and welcome back to another edition of Syko Therapy.

Firstly, Bitcoin is still at $64,000. How many weeks have I been writing to you now and Bitcoin has been at this price? Crazy.

This stillness is actually captured in a BTC index chart that measures the volatility, and it probably comes as no surprise to you that we are currently at record lows. We have been trading in a meagre 8% range for 7 weeks now, which is absolutely unprecedented. What this means is that we have some very extreme volatility on the horizon, and it has to be coming soon. You can imagine this current situation like a spring coiling - the longer this volatility compresses like this, the more aggressive its release will eventually be.

So today, we are going to analyse this record breaking volatility, how it relates to our current position and other similar periods, and what is likely to be coming next.

Included in this edition will be my brand new, Institutional Buy + Sell Signal, that has insane accuracy. Trade like smart money easily with this one indicator! As always, this indicator is free for all paying subscribers and the full details will be at the end of the article :)

Let’s get into it, friends!

It is a law of the universe that the more something compresses, the more violent the reaction will eventually be. This can be imagined using the spring analogy from above, or an earthquake, volcano, and even a dying sun. Eventually, the energy compresses to a point where it simply cannot take it any longer, and extreme volatility proceeds the lack of it.

That is where we are right now.

Other than now, there are only two different periods in which Bitcoin had such a lack of volatility.

• Jan 2023

• July 2023

The other two periods were the start of the recent bull cycle, and a short time after the bottom of 2022. Both of these ended up creating more upside, but the one in July initially gave us a move down.

This is why it’s important to note that extreme low volatility does not guarantee that the price will move higher. It just means it’s going to move, and move fast. In some of the lesser(almost as low) extreme volatility periods, we can see this more clearly.

The most notable situation here is in the 2018 bear market where we ended up dropping another 50%.

Is that going to happen this time?