Bitcoin’s ongoing struggle to start a strong upward trend has seen volatility rise to its highest point this year. Bitcoin volatility has surpassed the levels that reached in March when Bitcoin experienced its all-time high. This sudden increase in price swings has caught traders’ attention, creating hope that it could be the push needed to break Bitcoin out of its long period of stability.
Traders are closely monitoring Bitcoin’s move with anticipation of breaching the $62,000 mark, a level it hasn’t reached since August 9th. For Bitcoin to experience a strong upward movement, it first needs to sustain above $61,000 and then challenge the $62,000 mark. Well-known crypto trader Daan Crypto Trades sees the growing Bitcoin volatility as a positive indicator, suggesting that it could lead to a significant price move, whether up or down.
The Bitcoin Historical Volatility chart, which tracks price changes over time, recently climbed to 3.10%. This is higher than the 3.00% recorded on March 13th when Bitcoin hit its all-time high at $73,679. While rising volatility doesn’t guarantee that prices will increase, it does suggest that large price shifts are more likely.
Some traders are still cautious, however. They warn that this increased Bitcoin volatility could lead to a price drop instead of a rally. Theo Trader is one who raised concerns about a possible price dip in September based on past 10-year historical patterns.
Since Bitcoin’s halving event in April, the cryptocurrency has been trading within a narrow range between $49,842 and $72,000 with current trading price $60,882.59. Meanwhile, the recent uptick in volatility could draw more traders into the market, leading to bigger price swings and more trading opportunities.
Despite the risks, many traders remain optimistic about Bitcoin’s future. The put-to-call volume ratio, which shows the balance between sell and buy options, currently favors buying, indicating a positive outlook among options traders.
As Bitcoin approaches the $62,000 level, traders are closely monitoring for signs of a breakout or potential reversal. Successful tests of this resistance level could lead to a strong rally. Conversely, failure to stick above $61,000 may lead cryptocurrency continue to trade sideways or face a price drop.
Increased Bitcoin volatility has brought a mix of excitement and caution to the market. While some see it as a sign of an impending rally, others warn of potential risks. Traders will be keeping a close eye on key price levels in the coming days, waiting to see which direction Bitcoin will take.
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