Bitcoin Volatility has surpassed that of its March all-time high, and traders believe this may indicate the conclusion of the “massive consolidation.”
Bitcoin Volatility has surpassed the levels observed during its peak in March and is still rising. This has traders believing it may be the impetus required for BTC to emerge from its consolidation stage.
However, to start the rally, Bitcoin BTC $60,591 needs to hold above $61,000 and successfully retest $62,000, a level it hasn’t touched since August 9.
The anonymous cryptocurrency trader Daan Crypto Trades stated in an August 21 X post, “Bitcoin is ramping back up and getting close to levels we saw earlier this year at the all-time highs after a big slump in volatility levels.”
“In one way or another, it’s what’s ultimately needed to end this massive consolidation,” he continued.
Bitcoin volatility is getting close to its peak for the year.
As on CoinGlass statistics, on August 21, the volatility of Bitcoin was 3.42%, higher than the 3.00% recorded on March 13, the day it achieved its highest point of $73,679 on the Bitcoin Historical Volatility chart.
Bitcoin’s volatility peaked for 2024 on March 26, a little under two weeks later, at 4.28%.
Volatility by itself doesn’t necessarily portend a bull market, but it does suggest that there may be substantial movement in Bitcoin’s price beyond its present range. It could also lead the price to move in the opposite direction, so traders are cautious.
TheoTrader, an anonymous cryptocurrency trader, continued, “There is a high chance that September will print cycle lows based on ten years of price history.”
The price of Bitcoin has been stabilizing within a broad range, spanning from $49,842 to $72,000, since the April 20 Bitcoin halving.
Market participants may be more interested in betting on Bitcoin’s next move and may have more opportunity to profit from price fluctuations if there is more volatility in the market.
On the other hand, future traders seem optimistic that the price of Bitcoin will rise.
The demand for sell versus buy options is gauged by the put-to-call volume ratio of 66.18% calls and 33.82% puts, or a put-to-call ratio of 0.51.
According to CoinMarketCap, at the time of writing, Bitcoin was trading at $60,875 after attempting to surpass $62,000 but failing at $61,552.
Bitcoin is “testing the neckline,” a trading pattern used to validate support levels by drawing a line connecting the high points on the price of Bitcoin within a specific time frame, as noted by cryptocurrency trader Matthew Hyland in an X post on August 22.