Volatility traders may want to take note of the 60-day price range indicator, which suggests that bitcoin (BTC), currently trading above $100,000, could be on the verge of a significant price move.
The 60-day rolling price range measures the variation in bitcoin’s price over the past two months, capturing the highest and lowest price fluctuations in percentage terms. When this range tightens, it indicates market stability and a balance between supply and demand.
Recent analysis by Glassnode shows that bitcoin’s 60-day range is currently narrower than its trading range, which historically signals a period of heightened volatility ahead.
Glassnode noted in its weekly report, “In all of these instances, we’ve seen a burst of volatility follow, often occurring before major rallies in bull markets or before capitulations in bear markets.”
Volatility is cyclical, meaning periods of low volatility are typically followed by rapid price swings, and vice versa. However, volatility itself doesn’t predict the direction of the price movement; it simply indicates that price fluctuations may become larger and more unpredictable.
Recent market sentiment appears bullish, particularly with bitcoin futures on the Chicago Mercantile Exchange (CME), where traders have been loading up on call options. This bullish bias is also evident on platforms like Deribit.
According to QCP Capital, “BTC futures continue to trend upward, especially in the short term, with net-long positions from last week holding strong. Currently, bullish bets outpace bearish ones by a 20:1 ratio.”
If market positioning is any indicator, participants are anticipating a bullish breakout from the current consolidation phase between $90,000 and $110,000.
