Bitcoin’s volatility has surged beyond the levels seen during its all-time high in March, sparking speculation that a significant price breakout could be imminent. Recent data indicates that Bitcoin’s Historical Volatility chart hit 3.42% on August 21, surpassing the 3.00% recorded on March 13, when Bitcoin reached its all-time high of $73,679. The increased volatility, while not a bullish signal by itself, suggests potential significant price movements outside the current range.
Crypto trader Daan Crypto Trades noted that Bitcoin’s volatility is nearing levels seen earlier this year, which could signal the end of its extended consolidation phase. For Bitcoin to break out of this consolidation, it must hold above $61,000 and retest the $62,000 level, a threshold it hasn't reached since August 9.
Despite the rising volatility, which peaked at 4.28% in late March, the market remains cautious. Increased volatility can attract more traders, potentially creating opportunities but also raising risks. TheoTrader highlights that, based on historical data, September may bring cycle lows, adding an element of uncertainty to the forecast.
Currently, Bitcoin trades at $60,875, attempting to breach the $62,000 mark but falling short at $61,552. The put-to-call volume ratio stands at 66.18% calls and 33.82% puts, reflecting a bullish sentiment among traders. Matthew Hyland observed that Bitcoin is “testing the neckline,” a trading pattern that could confirm support levels and potentially pave the way for a significant upward movement.
As Bitcoin navigates this volatile phase, traders and investors are closely watching whether it will sustain its price above key levels and break out of its consolidation.
August 2024, Cryptoniteuae