This Data in Bitcoin Dropped to Its Lowest Level in Recent Years! Which Direction Does It Point to in Price? Analyst Warned!

Even though Bitcoin broke new records by surpassing its previous bullish ATH, investors and analysts expect more upside.

However, BTC has been stuck in the $91,000-$109,000 range for a while now. At this point, analysts have noted that Bitcoin may be preparing for a significant price move, according to the data.

Citing Glassnode data, the analyst noted that weekly realized volatility fell to 32% annually, while one-month implied volatility fell below 50%. These figures indicate that both volatilities have reached their lowest levels in recent years.

Noting that Bitcoin is a volatile asset but has been trading in a narrow range between $91,000 and $109,000 since the end of last November, the analyst said that BTC volatility has been squeezed tremendously.

However, the analyst stated that volatility tends to revert to the mean, and that the volatility explosion in the BTC price could go in both directions.

“Bitcoin’s squeeze volatility tends to revert to the mean after it hits its lows. So an unusually stable market often paves the way for a big move in either direction.

The longer and tighter the consolidation, the more violent the volatility burst.

As a result, the expected volatility explosion could soon pave the way for wild price movements.

“Bitcoin will break out of this range at some point. But the critical question is, will BTC go higher or lower? That remains to be seen.”

*This is not investment advice.