According to the experts of analytical firm Glassnode, the decline in implied and realized volatility to all-time lows has created a combination of wild price movements in the near future.
In historical hindsight, episodes like this one, with realized volatility falling below 28%, preceded significant price moves in both directions.
A significant divergence is currently forming between the price and the aSOPR indicator. Against the background of the prevailing downward movement of quotations, the amount of recorded losses is decreasing, which indicates the exhaustion of sellers.
As aSOPR approaches the breakeven value of 1.0 from the bottom up, the chances of a jump in volatility increase.