Bitcoin Activity Index Remains Below Its One-Year Average

Bitcoin (BTC) traded in a narrow range as a market activity index’s latest reading remained below its one-year average, while the index’s 30-day moving average stayed under that benchmark.

The index combines price volatility, the ratio of exchange inflows to outflows, and the balance of aggressive buying and selling. Its 30-day moving average crossed below the one-year average on Sept. 12 and reached a low on Oct. 6. The latest reading was 1,768, compared with a one-year average of 1,828.

From Oct. 6 to Oct. 13, Bollinger Band width contracted from 11.6% to 4.9% of the average price. Bitcoin fell from $85,800 to $83,200 over the same period, with little change in recent days. The range’s upper boundary was $86,000 and its lower boundary was about $81,900.

The 30-day moving average can provide a more useful view than daily readings, which fluctuate. A move by the index above the one-year average may indicate that activity is recovering. Holding above $86,000 may signal an upward move, while falling below and remaining under $81,900 may confirm a downward trend.