Could the Bitcoin ATR be showing us a Fall is incoming ?
For those that do not know, The Average True Range (ATR) is a tool used in technical analysis to measure volatility. Unlike many of today's popular indicators, the ATR is not used to indicate the direction of price. Rather, it is a metric used solely to measure volatility, especially volatility caused by price gaps
So why do I say a Drop maybe incoming ?
Volatility tends to rise as we come ot a High, as can be seen on this Chart of the BTC ATR since 2021. The Vertical dashed lines are the BTC ATH points.
https://www.tradingview.com/x/ojwXEeFw/
Again, as you can see, ATR continues for a short time after. The same happened in 2017 but for now, I WIll contrate on this date range.
Using a Fib retracement off the 1st ATR ATH in March 2021, it goes to the 0 line and then climbs back up to mid way between the 0.5 and the 0,618, before it turns around and Falls into the bear market.
Using a Fib retracement from the same March 2021 ATR ATH, but coming down to the Low of 2023, we can see that the ATR has once again climbed back up to near mid way between the 0.5 and the 0.618, formed an ATH and is now currently turning down.
It is repeating what it did in 2021
But does this mean that it will continue to fall ?
NO but we need to keep an eye on this..and remember, ATR falling foes not always mean PA will but this chart and the ATH's speak for themselves..
For me, I will wait and if the ATR reaches the 0.5, I wlll CLOSELY to see if it gets support or not.
So why do I say a Drop maybe incoming ?
Volatility tends to rise as we come ot a High, as can be seen on this Chart of the BTC ATR since 2021. The Vertical dashed lines are the BTC ATH points.
https://www.tradingview.com/x/ojwXEeFw/
Again, as you can see, ATR continues for a short time after. The same happened in 2017 but for now, I WIll contrate on this date range.
Using a Fib retracement off the 1st ATR ATH in March 2021, it goes to the 0 line and then climbs back up to mid way between the 0.5 and the 0,618, before it turns around and Falls into the bear market.
Using a Fib retracement from the same March 2021 ATR ATH, but coming down to the Low of 2023, we can see that the ATR has once again climbed back up to near mid way between the 0.5 and the 0.618, formed an ATH and is now currently turning down.
It is repeating what it did in 2021
But does this mean that it will continue to fall ?
NO but we need to keep an eye on this..and remember, ATR falling foes not always mean PA will but this chart and the ATH's speak for themselves..
For me, I will wait and if the ATR reaches the 0.5, I wlll CLOSELY to see if it gets support or not.
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