It’s sure getting tight out there…
There’s an old adage that from compression comes expansion.
We saw this exact development take place a month ago before Bitcoin’s face ripper of a rally.
Here’s why this “compression” is important to pay attention to:
As markets become more coiled, buyers or sellers are ultimately forced to front up. This period of shrinking volatility is often met with violent unwinds – in either direction.
So when we see these periods of notable reductions in volatility, pay attention because the resolution often sets the tone for weeks and months to come.
Fast forward to today, we’re seeing the same setup take place.