Bitcoin Appears Poised for a Price Volatility Surge, According to Key Indicator.

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

Traders anticipating significant price swings in Bitcoin (BTC) may soon get their opportunity. A key 60-day price range indicator is signaling potential for increased price turbulence, as Bitcoin, currently trading above $100,000, shows signs of being a “coiled spring” ready to release in either direction.

The 60-day price range tracks the variation between Bitcoin’s highest and lowest price levels over the past two months, providing a snapshot of price stability or volatility. When the range tightens, it typically signals that the market is in a consolidation phase, with demand and supply in equilibrium.

According to Glassnode’s analysis, Bitcoin’s 60-day price range has recently narrowed more than its current trading range. This pattern has historically preceded major volatility surges, with previous instances aligning with both early bull market rallies and late-stage capitulations during bear cycles.

“Historically, these patterns have occurred before significant bursts of volatility, with most of them happening in early bull markets or prior to the end of bear markets,” Glassnode noted in its weekly report.

Volatility, by nature, is mean-reverting, meaning it tends to fluctuate around its lifetime average. After periods of low volatility, rapid price movements are more likely, while after high volatility, the market often returns to a more stable state.

While volatility does not predict whether prices will surge or slump, higher volatility typically means bigger, more unpredictable price swings.

Recently, market sentiment has leaned toward bullish, with traders showing increased interest in call options on platforms like the Chicago Mercantile Exchange (CME). The same bullish bias is evident on Deribit and other exchanges.

“BTC futures are trending upward, especially on the short end, with the market’s net-long exposure remaining strong. Bullish bets currently outnumber bearish ones by a ratio of around 20:1,” QCP Capital mentioned in a recent Telegram update.

If the positioning in futures markets is any indication, it appears that traders expect a bullish breakout for Bitcoin after its multi-week consolidation between $90,000 and $110,000.