The ATR (Average True Range) is a technical indicator that measures an asset’s volatility by calculating the average of the widest spread between the high and low of a period, the high and previous close, or the low and previous close over 14 candles. Unlike arbitrary stop-losses, it allows for placing a stop calibrated to market reality, typically between 1.5 and 2 times the ATR. On July 20, 2026, Bitcoin’s implied volatility index (BVIV) was trading between 34% and 38%, a low zone that has preceded several volatility spikes in the past. In late May 2026, a passage through this same zone preceded Bitcoin dropping from $74,000 to under $60,000 in less than a week. The ATR does not predict the direction or timing of a move, but it allows for sizing a position based on actual market conditions.
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