Bitcoin’s Choppiness Index Reaches 54, Indicating Possible Volatility Breakout

Bitcoin's volatility compression is increasing, indicated by the “choppiness index,” which measures sideways price movements. Current research shows bitcoin’s implied volatility is at multi-year lows, contributing to this consolidation.

Key points include:

Bitcoin has traded between $110,000 and its all-time high of $124,000, currently around $113,000.
The choppiness index recently rose to 54, the highest since early November 2024 before a price surge to over $90,000.
The last significant rise was at the beginning of the current bull cycle in early 2023, when the index reached 57.
Further consolidation may occur as volatility remains low.
The upcoming U.S. Consumer Price Index (CPI) release could trigger a breakout or price movement.

This period of consolidation follows previous patterns observed before notable price shifts.