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- BTC 180-Day Volatility hits record low—historically bullish.
- Spot withdrawals of $492M indicate strong accumulation.
- Derivatives market aligns with breakout expectations.
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Bitcoin [BTC] appears poised for a potential surge after touching a new all-time high. Market signals, including low volatility, rising accumulation, and bullish derivatives positioning, suggest that investors are bracing for another major move.
Fractal Patterns Point to Potential Rally
Bitcoin’s 180-Day Volatility, which tracks the standard deviation of daily returns, recently dropped to its lowest level on record, according to Alphractal. Historically, nine out of eleven similar instances led to a strong rally. Such suppressed volatility indicates that BTC could be setting the stage for another upward breakout, potentially surprising short-term traders.
Meanwhile, the Fund Flow Ratio, a measure comparing exchange inflows and outflows against total on-chain transactions, also reached historic lows per CryptoQuant data. This indicates heavy accumulation, suggesting that investors are preparing to hold BTC for the mid-term rather than trade it quickly.
Spot Market Signals Long-Term Confidence
Spot investors have actively moved Bitcoin into private wallets, withdrawing roughly $492 million over the past 48 hours, according to CoinGlass. This signals confidence in BTC’s long-term prospects.
Additionally, Bitcoin’s market dominance has risen to 58.3%, reflecting a capital rotation from altcoins back to BTC. Farzam Ehsani, CEO of VALR, notes that macroeconomic conditions, institutional adoption, and liquidity trends favor higher BTC levels in Q4. However, minor pullbacks remain possible before a sustained rally.
Derivatives Traders Align With Bullish Sentiment
Futures markets reinforce the optimistic outlook. Bitcoin’s Funding Rates climbed to 0.0089%, showing that most open contracts bet on price gains. Rising Open Interest combined with higher Funding Rates further signals trader confidence in a price breakout.
These combined factors—historically low volatility, strong accumulation, and bullish derivatives positioning—suggest that Bitcoin may be on the cusp of another major price expansion. Investors appear ready to drive BTC higher if the current trend persists.
While minor pullbacks could occur, current indicators point to growing bullish momentum. Spot accumulation, derivative positioning, and historical volatility trends all suggest Bitcoin is preparing for another phase of upward movement, potentially pushing toward new all-time highs.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Strategy’s $78B Bitcoin Stash Nears Microsoft’s Cash Pile — Tech Giants Miss Out on Massive Gains
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
