Bitcoin futures volatility is dying out as BTC/USD resumes the downside

• Bitcoin flirts with $6,400 amid low trading activity.  
• Bitcoin futures weekly volatility slashed in half.

Bitcoin slipped below $6,40o amid uneventful Tuesday session. The digital coin No. 1 has resumed the downside after a failed attempt to break above a critical $6,460 resistance level created by the upper line of the recent channel.

Bitcoin futures volatility is nowhere to be seen

Despite a shallow recovery, the market remains depressed with volumes decreasing rapidly both on the spot and on Bitcoin futures markets. The weekly volatility for CBOE Bitcoin futures (XBT) dropped to 6.6% in October, which is less than a half from the average of 15.65% since inception, according to Kevin Davitt, senior instructor for The Options Institute at Cboe Global Markets.

“As it turns out, [bitcoin]XBT futures and cryptos, in general, are moving with very little speed. The week ending Oct. 26th was the least volatile since futures were introduced nearly a year ago,” the expert commented.

He also noted an interesting inverse correlation with equity markets, where volatility has been growing recently. Both CBOE and CME Bitcoin futures November contract gained 0.8% to $6,395 and $6,400 respectively.

Bitcoin’s technical picture

On the intraday chart, BTC/USD has entered a congestion zone of $6,400-$6,380 that includes a lower border of October consolidation channel. A sustainable movement lower will take us towards $6,336 (SMA50, 4-hour chart) and psychological $6,300.The next important support lies with $6,200.

On the upside, the first important resistance is created by DMA50 at $6,448. It is followed by the above-mentioned upper line of the recent channel at $6,460 and $6,700.  

BTC/USD, 4-hour chart