ANALYSIS: BITCOIN ADX TREND STRENGTH DROPPED TO MORE THAN TWO YEARS, VOLATILE REGRESSION SIGNAL INCREASED, DIRECTIONAL CHOICE FORTHCOMING

On 14 August, CryptoQuant Analyst Darkfost wrote that the bitcoin ADX indicator (the average trend index) today reached its lowest level in more than two years, another signal suggesting a return to volatility. ADX is a tool for measuring the intensity of trends and is not oriented. It does not include any perceived increase, but is used to focus on the intensity of trends rather than on price behaviour. The very low level of ADX means that the current bitcoin's traverse zone has been going on for quite a long time, that trend dynamics are almost depleted and that prices will have to choose in the near future. Darkfost emphasized that there were a number of indicators pointing to the same conclusion, namely that the market had been in "hypnotic" low volatility for months and that large fluctuations were imminent and investors should be vigilant。