This Data in Bitcoin Has Reached the Lowest Level in Recent Years! What Does It Indicate in Price? Analyst Warned!

Bitcoin, despite surpassing its previous bull ATH, investors and analysts are expecting further upside.

However, BTC has been stuck in the range of 91,000-109,000 dollars for a while. At this point, an analyst pointed out that Bitcoin may be preparing for a significant price movement according to the data.

The analyst referring to Glassnode data pointed out that the weekly realized volatility has dropped to 32% annually, while the one-month implied volatility has fallen below 50%. These figures indicate that both volatilities have reached their lowest levels in recent years.

Despite Bitcoin being a volatile asset, an analyst noted that it has been trading in a narrow range between $91,000 and $109,000 since the end of last November, stating that BTC volatility has tightened tremendously.

However, the analyst pointed out that the volatility tends to return to the average, indicating that the volatility explosion in BTC price could occur in both directions.

Bitcoin's constrained volatility tends to revert to the average after reaching the lowest levels. In other words, an unusually stable market often paves the way for a significant movement in both directions.

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

The expected volatility explosion can soon pave the way for crazy price movements.

Bitcoin, at some point, will break out of this range. However, the critical question is; will BTC go higher or will it go lower? This is not yet clear.