Traders focusing on volatility trading may find opportunities to capitalize on significant price fluctuations. Currently, Bitcoin (BTC) 
$106,491 is trading above $100,000, and it appears poised to release energy in both upward and downward directions.
60-Day Price Range
At the heart of this indicator is the moving 60-day price range, expressed as the percentage difference between maximum and minimum prices. A narrow range indicates market stability and a balanced supply-demand dynamic.
Glassnode Analysis
Analysis from Glassnode shows that Bitcoin’s 60-day range is narrower than the current trading range. Historically, such patterns have preceded volatility eruptions.
“All these situations have occurred before a significant volatility surge; most typically during early bull markets or the final stages of downturn cycles.”
Market Participants’ Expectations
There is a noted tendency for volatility to revert to the mean. Rapid price fluctuations often follow periods of low volatility, and vice versa.
Additionally, it is emphasized that volatility is independent of price direction. High volatility implies larger and potentially more unpredictable price swings but does not indicate whether prices will rise or fall.
“BTC futures continue to maintain an upward trend in the short term, with the market’s net long position remaining strong. Bullish bets currently outnumber bearish ones by about 20:1.”
If this positioning serves as a guide, it can be inferred that market participants expect BTC’s multi-week consolidation between $90,000 and $110,000 to result in a bullish outcome.
In light of these developments, it is crucial for traders to monitor market dynamics closely and update their risk management strategies. Bitcoin’s volatility indicators continue to provide important insights into market movements.
