Bitcoin’s volatility has passed the levels it reached during its all-time high in March and continues to rise, and traders think this could be the catalyst needed for BTC to finally break out of its consolidation phase. 

But to trigger the rally, Bitcoin ( BTC ) must first hold above $61,000 and successfully retest the $62,000 level, which it hasn’t hit since Aug. 9.

“Bitcoin after a big slump in volatility levels, it’s now ramping back up and getting close to levels we saw earlier this year at the all-time highs,” pseudonymous crypto trader Daan Crypto Trades wrote in an Aug. 21 X post .

“It’s what’s eventually needed to put an end to this massive consolidation in one way or another,” he added.

Bitcoin volatility approaching its year-to-date high

On Aug. 21, the Bitcoin Historical Volatility chart —  a tool used to display the volatility of Bitcoin over a period of time — hit 3.42%, surpassing the 3.00% recorded on March 13, when Bitcoin reached its all-time high of $73,679, according to CoinGlass data .

Just under two weeks later, on March 26, Bitcoin’s volatility hit its highest point for 2024, at 4.28%. 

While volatility isn’t a bullish signal by itself, it indicates that Bitcoin’s price could see significant movement outside of its current price range. Traders warn that it could also cause the price to go the other way. 

“Based on 10 years of price history there is a high chance that September will print cycle lows,” pseudonymous crypto trader TheoTrader added .

Bitcoin volatility ‘ramping up’ above ATH levels as price retests $62K image 0

Bitcoin is down 10.99% over the past 30 days. Source: CoinMarketCap

Since the April 20 Bitcoin halving , Bitcoin prices have been consolidating in a wide range that extends from $49,842 to $72,000.

Increased volatility can benefit the market by attracting greater trader interest in speculating on Bitcoin’s next move and potentially more opportunities for traders to profit from price swings.

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However, future traders appear to be bullish that Bitcoin’s price will go upward.

The put-to-call volume ratio, measuring the demand for sell versus buy options, stands at 66.18% calls and 33.82% puts, resulting in a put-to-call ratio of 0.51.

At the time of publication, Bitcoin was trading at $60,875 after attempting to break through $62,000, but it fell short at $61,552, as per CoinMarketCap. 

Crypto trader Matthew Hyland pointed out in an Aug. 22 X post that Bitcoin is “testing the neckline,” a trading pattern used to confirm support levels by drawing a line through the high points on Bitcoin’s price within a certain period.

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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.