Investors who focus on volatility trading may find opportunities to benefit from significant price fluctuations. Bitcoin (BTC) $101,713.0is currently trading above $100,000 and looks ready to release energy in both directions like a radiating spring.
60 Day Price Range
The basis of this indicator is the moving 60-day price range, where the maximum and minimum price are expressed as a percentage. A narrow range means the market is stable and demand-supply balance is achieved.
Glassnode Analysis
Analysis by Glassnode shows that bitcoin’s 60-day range is narrower than its current trading range. Historically, such patterns have predicted bursts of volatility.
“All of these situations occurred before a significant burst of volatility; Most occurred in early bull markets or before the final stages of down cycles.”
Expectations of Market Participants
It is stated that volatility tends to revert to the mean. Periods of low volatility are often followed by rapid price fluctuations and vice versa.
Additionally, it is emphasized that volatility is independent of price. High volatility means price fluctuations will be larger and potentially more unpredictable, but it does not indicate whether prices will move up or down.
“BTC futures continue to trend upwards, especially in the short term, with the market’s net long position remaining intact. Bull bets currently outperform bear bets by about 20:1.”
If this positioning is a guide, market participants expect BTC’s multi-week consolidation between $90,000 and $110,000 to end bullishly.
In light of these developments, it is important for investors to carefully monitor market dynamics and update their risk management strategies. Bitcoin’s volatility indicators continue to provide important clues about market activity.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
