{"id":9237,"date":"2025-01-23T09:00:26","date_gmt":"2025-01-23T09:00:26","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=9237"},"modified":"2025-01-23T09:00:26","modified_gmt":"2025-01-23T09:00:26","slug":"bitcoin-is-like-coiled-spring-nearing-burst-of-price-volatility-key-indicator-suggests","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=9237","title":{"rendered":"Bitcoin Is Like Coiled Spring Nearing Burst of Price Volatility, Key Indicator Suggests"},"content":{"rendered":"<div>\n<p>Volatility traders looking to capitalize on significant price swings may soon find opportunities. A key indicator suggests that bitcoin (<a href=\"https:\/\/www.coindesk.com\/price\/bitcoin\" target=\"_blank\">BTC<\/a>), currently above $100,000, resembles a coiled spring poised to release energy in either direction.<\/p>\n<p>The indicator is the rolling 60-day price range, representing the variation in maximum and minimum price ticks in percentage terms. A tighter range implies stable market conditions characterized by range play and demand-supply equilibrium.<\/p>\n<p>Analysis by Glassnode shows that bitcoin&#8217;s 60-day range is now tighter than the current trading range. Historically, such patterns have presaged volatility explosions.<\/p>\n<p>&#8220;All of these instances have occurred prior to a significant burst of volatility, with the majority being in early bull markets or prior to late-stage capitulations in bear cycles,&#8221; <a href=\"https:\/\/glassnode.com\/\" target=\"_blank\">Glassnode<\/a> said in its weekly analysis report.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/cdn.sanity.io\/images\/s3y3vcno\/production\/e70e5338666b35853572877064e561036c805d6d-2400x1350.png\" alt=\"\"><\/p>\n<p>Volatility is mean-reverting, that is, it tends to oscillate around its lifetime average. Rapid price swings typically follow a low-volatility period and vice versa.<\/p>\n<p>It is also price agnostic. Higher volatility means price fluctuations will become bigger and potentially more unpredictable. It does not say whether prices will surge or slump.<\/p>\n<p>Recent flows, however, have been biased bullish, particularly on the Chicago Mercantile Exchange, where traders <a href=\"https:\/\/www.coindesk.com\/markets\/2025\/01\/22\/cme-bitcoin-options-at-most-bullish-since-u-s-election-etf-inflows-surge\" target=\"_blank\">have been piling<\/a> into call options. A similar bullish bias is apparent on Deribit and other exchanges.<\/p>\n<p>&#8220;BTC futures continue to trend upward, especially on the front end, as the market&#8217;s net-long exposure from last week remains solid. Bullish bets currently outpace bearish ones by a ratio of approximately 20:1,&#8221; QCP Capital said in a Telegram broadcast.<\/p>\n<p>If the positioning is a guide, it&#8217;s safe to say that market participants expect a bullish resolution to BTC&#8217;s multiweek consolidation between $90,000 and $110,000.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Volatility traders looking to capitalize on significant price swings may soon find opportunities. A key indicator suggests that bitcoin (BTC), currently above $100,000, resembles a coiled spring poised to release energy in either direction. The indicator is the rolling 60-day price range, representing the variation in maximum and minimum price ticks in percentage terms. A [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-9237","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/9237","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9237"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/9237\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9237"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9237"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9237"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}