Originally published on: August 22, 2024
Bitcoin’s volatility is surging above levels seen during its all-time high in March, prompting traders to speculate on a potential breakout from its consolidation phase. In order for Bitcoin to rally, it must maintain support above $61,000 and successfully retest the $62,000 level, a milestone not reached since August 9.
According to pseudonymous crypto trader Daan Crypto Trades, Bitcoin’s volatility has significantly increased, nearing levels observed earlier this year at the peak. This trend could signify the end of the extended consolidation phase.
On August 21, the Bitcoin Historical Volatility chart hit 3.42%, surpassing the levels seen during the previous all-time high. This rise in volatility suggests that Bitcoin’s price may experience notable movement beyond its current range, presenting opportunities for traders to capitalize on price swings.
While increased volatility may attract more traders to speculate on Bitcoin’s price movements, it also carries risks of sudden downturns. Despite this uncertainty, traders remain optimistic about Bitcoin’s upward trajectory.
The put-to-call volume ratio indicates a bullish sentiment, with a higher demand for buy options compared to sell options. This ratio suggests that traders anticipate Bitcoin’s price to head higher in the near future.
Currently trading at $60,875, Bitcoin recently tested the $62,000 level but faced resistance at $61,552. Analysts highlight the importance of Bitcoin holding key support levels to confirm an upward trend.
As Bitcoin continues to navigate through volatile market conditions, traders are closely monitoring price movements and key support levels to anticipate potential opportunities for profit. Stay informed and make informed decisions by conducting thorough research before making investment choices.