The Price on bitcoin Was revised to recover $ 100,000 on Friday and collect on the back of the US securities and exchange commission (SEC) decision to release the trial against the Crypto Exchange Coinbase. However, the main Cryptocurrency failed to take advantage of this momentum change after $ 1.4 billion utilization of the village bite exchange.
With the Bitcoin Prize, which is now floating over $ 96,000, chain data recently indicates that some volatility metrics are approaching historically low levels. This is how the latest volatility trend can affect BTC price performance in the coming weeks.
Is a BTC price rally on the horizon?
In a recent X -platform, Crypto Analytics Glassnode declared How two important volatility indicators that approach historically low levels can affect the Bitcoin price and its future track. The two relevant measurement values here are 1-week “realized volatility” and “alternatively implied volatility.”
For context, realized volatility (also called historical volatility) measures how much the price of an asset (BTC, in this case) has changed for a certain period. Implicated volatility, on the other hand, is a metric that assesses the likelihood of future changes in an asset price.
According to Glassnode data, Bitcoin 1-week realized volatility recently fell to 23.42%. The intelligence company on the chain noted that the current value of the meters is close to historical lowness, as BTC’s realized volatility has only fallen below this level a few times over the past four years.
Source: Glassnode/X
Noteworthy, the 1-week realized volatility metric fell to 22.88% and 21.35% in October 2024 and November 2024 respectively. These points have served as bottoms, with the metric recovery from this level earlier. From a historical perspective, such reductions in realized volatility have preceded Significant price movementsIncrease the odds of a potential eruption – or even a correction.
Source: Glassnode/X
At the same time, Bitcoin’s 1-week alternative implied volatility has also experienced a significant decline to 37.39%. The current level of the indicator is near multi-year lowness-sneeal seen by 2023 and early 2024. Similarly, the Bitcoin prize witnessed significant market movements last time the implied volatility was around this level.
In addition, it is worth noting that the alternatives in the longer term implicit volatility currently exhibit another trend. The 3-month implied volatility is approximately 53.1%, while the 6-month indicator floats at 56.25%. This suggests that market participants expect increased volatility in the coming months.
Bitcoin price
From this writing, Bitcoin is valued at approximately $ 95 340, which reflects an over 3% decrease over the past 24 hours.
The price of Bitcoin on the daily timeframe | Source: BTCUSDT chart on TradingView
