Bitcoin’s Implied Volatility Remains Low, But Hints at More Upside for BTC Price
By: bitcoin ethereum news|2025/05/10 01:00:12
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Bitcoin (BTC) price soared 7.33% on May 8, setting up a daily high of $104,175. In total, BTC has soared nearly 22% since April 21. Despite this sudden spike and millions in liquidations, BTC’s 30-day Implied Volatility (IV) remains around 48 for the ninth day. BTC price today trades at $102,855.0 on 3 PM. In the past 24 hours, BTC is up 2.36% with a daily high of $103,890.0 on May 9. Volmex’s 30-day Implied Volatility for Bitcoin (BVIV) hovers around 48. Since implied volatility is annualized, Bitcoin’s daily percentage price swing would be 2.52%, obtained by dividing BVIV by the square root of 365, since BTC trades all year round. Multiplying 2.52% with the BTC’s current value shows that Bitcoin price could swing roughly $2,619 in either direction today. Bitcoin price prediction based on 30-day IV suggests that the upper and lower limits for Bitcoin (BTC) today would be $106.5k and $101.3k, respectively. What’s next for the BTC price? While using 30D BVIV to predict today’s average Bitcoin price range is good, we can take this a step further. Averaging the IV for multiple timeframes can help forecast short-term tops and bottoms for BTC. The logic behind this outlook is that spikes in IV are often caused by demand in short-dated options, which leads to traders getting caught on the wrong side. The blue line shows average IV standard deviation lines on either side. A spike in BVIV above a standard deviation of +2 signals inflated IVs and hints reversal. On the contrary, a drop in IVs below the -2 standard deviation would indicate that a bullish reversal is next. Plotting these buy and sell signals on the chart shows a decent success rate of predicting cycle tops and bottoms for BTC price. The indicator shows low IVs despite BTC’s climb to $104k. This implies that the investors are likely sidelined. It also hints that the chances of BTC’s price continuing on this uptrend are high, potentially reaching ATHs. On the four-hour chart, this signal becomes noisy. Regardless, the BVIV has tagged the +1.5 standard deviation band, signaling overheating and a potential short-term correction or consolidation. To conclude, the outlook for Bitcoin price remains bullish as ever, with the ATH just inches away. Investors must remain cautious and not euphoric since altcoins have yet to break out and rally as BTC did. So, there are plenty of opportunities in the crypto market. Frequently Asked Questions (FAQs) Bitcoin’s current price is around $103,463, with a 4.3% increase from yesterday. Based on the 30-day Implied Volatility, Bitcoin’s price could swing roughly $2,619 in either direction today, with predicted upper and lower limits of $106,500 and $101,300, respectively. The recent surge may be attributed to market front-running Trump’s announcement, which caused a 7.33% increase in Bitcoin’s price. ✓ Share: Akash Girimath Senior Cryptocurrency Analyst & Market Strategist Engineer-turned-analyst Akash Girimath delivers data-driven insights on cryptocurrency markets, DeFi, and blockchain technology for platforms like AMBCrypto and FXStreet. Specializing in technical analysis, on-chain analytics, and risk management, he empowers institutional investors and retail traders to navigate market volatility and regulatory shifts. A hands-on strategist, Akash merges active crypto portfolio management with research on Web3, NFTs, and tokenomics. At AMBCrypto, he led cross-functional teams to redesign content frameworks, achieving record-breaking traffic growth through scalable editorial strategies. His analyses dissect market sentiment, investment strategies, and price predictions, blending macroeconomic trends with real-world trading expertise. Known for mentoring analysts and optimizing workflows for high-impact reporting, Akash’s work is cited across global crypto publications, reaching 500k+ monthly readers. Follow his insights on YouTube, X, and LinkedIn for cutting-edge perspectives on decentralized ecosystems and crypto innovation. Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss. Source: https://coingape.com/markets/bitcoin-implied-volatility-remains-low-hints-upside-for-btc-price/
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