Bitcoin’s volatility is experiencing a notable resurgence following a period of relative calm. According to expert analyst Daan Crypto Trades, the cryptocurrency’s volatility is now approaching levels last seen earlier this year, suggesting an imminent end to its current consolidation. The recent uptick signals a potential directional shift, bringing renewed attention to Bitcoin’s price movements.
Increased Volatility from February to May 2023
The period between mid-February and May 2023 witnessed significant increases in volatility, which aligned with Bitcoin’s price surge. During this time, Bitcoin’s price reached close to $70,000 as volatility exceeded 3.0%. These heightened levels of market activity reflected stronger price swings, with the cryptocurrency nearing its all-time highs. The increased volatility suggested heightened speculative trading during this phase, pushing Bitcoin to test its peak levels.
Following this surge, Bitcoin’s volatility and price both saw sharp declines from May through July 2023. During this period, volatility dipped below 2.0%, and prices stabilized between $50,000 and $60,000. This drop in volatility reflected a market that had entered a consolidation phase, characterized by reduced price movements and an indecisive trading environment. Bitcoin’s price stayed range-bound, signaling neither bullish nor bearish dominance.
Volatility Resurgence in August 2023
By mid-August 2023, volatility began to climb once again, rising from approximately 1.5% to 3.0%. This was accompanied by a recovery in Bitcoin’s price, which recently surpassed $60,000. As volatility approached levels seen during previous peaks, it signaled a possible end to the prolonged consolidation. Higher volatility typically suggests a more active market, potentially leading to larger price movements. Analysts believe this volatility increase may drive a decisive shift in Bitcoin’s price direction in the near term.
Bitcoin Signals Breakout Amidst Fear and Heavy Shorting
At the time of writing, Bitcoin’s price stands at $60,742.03, with a 2.24% increase over the last 24 hours. This upward momentum reflects a broader market recovery, as evidenced by the 4.14% rise in Bitcoin’s price over the past week. The cryptocurrency’s 24-hour trading volume is reported at $35.9 billion, with a market cap of $1.2 trillion.
