Bitcoin's Choppiness Index on the Rise, Breakout Expected
Finance/Markets

Bitcoin's Choppiness Index on the Rise, Breakout Expected

With implied volatility at multi-year lows, Bitcoin's price is showing signs of potential breakout as it consolidates before key CPI data.

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What You Should Know:

  • The choppiness index for Bitcoin has reached 54 over a one-month timeframe, a level not seen since just before the November 2024 election rally.
  • Bitcoin is currently consolidating between $110,000 and $124,000, and the ongoing volatility compression suggests a potential breakout could occur following today’s CPI release at 1:30 PM.

Bitcoin’s persistent volatility compression is captured by the “choppiness index,” a measurement that indicates sideways price consolidation. Previous CoinDesk research indicates that Bitcoin’s implied volatility remains at multi-year lows, contributing to the price’s sideways movement.

For the last several months, Bitcoin has fluctuated between $110,000 and its all-time high of $124,000, with current prices around $113,000.

Additional Insights:

According to Checkonchain, the choppiness index coming in at 54 suggests there is more room for consolidation, especially with forthcoming volatility expected. As the U.S. Consumer Price Index (CPI) is set for release at 12:30 PM UTC, this could lead to significant price movements.

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