Bitcoin: Implied Volatility Drops Below 40

Bitcoin implied volatility has dropped significantly below 40, placing it at the lower historical band for this time of year and setting up classic mean reversion over the next 90 days.

Extremely low volatility readings under 40 have consistently resolved through upside moves, making the path of least resistance higher for BTC according to the latest data from André Dragosch.

Price action on the 4h chart shows BTC trading at $62975 inside the Bollinger Bands with upper resistance at $64287 and lower support at $62790, while the bearish EMA50 at $63927 and EMA200 at $63703 cap upside and the MACD death cross at -339.56 reinforces near-term pressure despite neutral RSI at 35.92; a test of the lower band support often precedes the volatility expansion that fuels the next leg higher in BTC price prediction models.