Key Indicator Suggests Bitcoin Is on the Brink of Major Price Movement.

Bitcoin Poised for Price Volatility Spike as 60-Day Range Narrows

Bitcoin (BTC) traders watching for significant price movements may soon have their chance, as a key indicator suggests that increased volatility could be on the horizon. With Bitcoin currently trading above $100,000, the market appears to be in a consolidation phase, resembling a “coiled spring” that’s ready to release in either direction.

The 60-day price range indicator measures the difference between Bitcoin’s highest and lowest price points over the past two months, indicating the level of market volatility. When the range narrows, it typically points to stability and an equilibrium between demand and supply. However, such tightening often precedes a sharp price move.

Glassnode’s latest analysis shows that Bitcoin’s 60-day price range has contracted more than its current trading range, a pattern that historically leads to volatility surges.

“Each time the 60-day range has tightened, it has been followed by a significant price movement, either during the beginning of a bull run or the final stages of a bear market,” Glassnode noted in their recent report.

Volatility, by nature, tends to be mean-reverting, meaning after a period of low volatility, the market typically experiences rapid price changes. The direction of the movement, however, remains unpredictable, and higher volatility means larger price fluctuations.

Recent market sentiment has favored bullish positions, particularly on the Chicago Mercantile Exchange (CME), where Bitcoin call options have seen increased demand. The same bullish trend is visible on Deribit and other platforms.

“BTC futures are showing an upward trend, especially in the short term, with a net-long exposure remaining robust. Bullish positions currently outnumber bearish ones by a 20:1 ratio,” QCP Capital said in a Telegram update.

Given the current positioning in the futures market, it seems that traders are anticipating a bullish breakout from Bitcoin’s ongoing consolidation between $90,000 and $110,000, setting the stage for a potential price rally in the near term.