Bitcoin’s volatility has now surpassed levels seen during its all-time high in March, signaling a possible end to its prolonged consolidation phase. This increase in volatility is raising expectations among traders that Bitcoin could soon break out of its current price range.
Volatility on the Rise: A Sign of Movement?
Bitcoin’s volatility recently climbed beyond the levels recorded during its March all-time high, and it continues to increase. Traders are closely monitoring these developments, believing that higher volatility might be the catalyst needed for Bitcoin to make a decisive move. However, for a sustained rally, Bitcoin must hold above $61,000 and successfully retest the $62,000 level—a price it hasn’t reached since August 9.
Pseudonymous crypto trader Daan Crypto Trades highlighted this trend in an August 21 post on X (formerly Twitter), noting that Bitcoin’s volatility is ramping up to levels similar to those seen earlier this year. He suggested that this could bring an end to the current consolidation phase.
Bitcoin Volatility Nears Yearly High
On August 21, Bitcoin’s Historical Volatility chart showed a significant spike, reaching 3.42%, which surpassed the 3.00% volatility level observed on March 13, when Bitcoin hit its all-time high of $73,679, according to CoinGlass data. Bitcoin’s highest volatility point for 2024 was recorded on March 26, at 4.28%.
While increased volatility doesn’t inherently signal a bullish trend, it does suggest that Bitcoin’s price could experience significant movement, either up or down. Some traders caution that this volatility could lead to a downside, particularly given historical patterns where September often sees cycle lows.
Traders’ Sentiment: A Bullish Outlook?
Despite the mixed signals from volatility, many traders remain optimistic about Bitcoin’s potential to break out of its current range. The put-to-call volume ratio—an indicator of market sentiment—currently stands at 66.18% calls to 33.82% puts, with a ratio of 0.51, suggesting a bullish sentiment in the market.
As of the latest data, Bitcoin was trading at $60,875, after attempting to breach the $62,000 mark but falling short at $61,552, according to CoinMarketCap. Crypto trader Matthew Hyland noted on August 22 that Bitcoin is “testing the neckline,” a pattern used to confirm support levels by drawing a line through the high points of Bitcoin’s price over a specific period.
