Bitcoin Price Crosses $6,700 as New Signs of Life Emerge

Bitcoin is showing new signs of life Monday, as declining volatility and rebounding trade volumes put markets on course for bigger short-term gains.

BTC/USD Update

Bitcoin’s price breached $6,700 for the first time since Sept. 28, signaling renewed upside in the market. At press time, BTC was trading at $6,668.40 on Bitfinex for a daily gain of 0.9%.

The slight uptrend was accompanied by an increase in daily trade volumes. Overall turnover in BTC amounted to $3.8 billion, according to CoinMarketCap. Volumes dipped to around $3.2 billion over the weekend.

According to the daily chart, bitcoin’s price is flirting with the 50-day moving average. An ability to overcome this level could generate a sustained rally toward $6,800 and $7,000. Both levels have proven elusive in recent months. The relative strength index (RSI) is currently trending at a modest 53.8 based on the aforementioned chart.

At current levels, bitcoin has an overall market capitalization of $115 billion. That’s enough for a 52.1% share of the $220.6 billion cryptocurrency market. BTC values are virtually unchanged over the past seven days, which mirrors price trends in the broader market.

Declining Volatility

Bitcoin’s daily volatility continues to decline, offering further sign of a maturing market since the launch of crypto-focused futures contracts last December. According to the bitcoin volatility index, BTC’s daily fluctuations have fallen to their lowest levels in 15 months. The indicator, which is provided by, measures how much bitcoin’s price varies over time.

A high volatility reading suggests prices are susceptible to large fluctuations over a short period whereas a lower reading means changes in value occur at a steady pace over time.

The following chart highlights bitcoin’s 30-day volatility average over the past 12 months.

As the chart demonstrates, volatility spiked during the height of the bull market but has been in perpetual decline since February. While declining volatility is a positive indicator of market health, it also makes gains like we saw in December harder to come by.

If recent history is any indication, the market could be due for a meaningful spike in volatility ahead of the XBT futures expiry next week. The next bitcoin futures contract from CBOE is set to expire Oct. 17.  Volume in the current October contract amounts to 1,215, according to the latest CBOE futures data.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Chief Editor to and Contributor to, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi