[Analysis] "Bitcoin short-term volatility expands…may break resistance if liquidity is maintained"

Bitcoin (BTC) prices' short-term volatility is increasing, according to analysis. Observers say it could break the resistance if liquidity is maintained.

Arab Chain (Arab Chain), a CryptoQuant contributor, said on the 10th through CryptoQuant, "The market is currently showing high short-term volatility, but has entered a subtle transition phase in which medium-term volatility is easing."

What Arab Chain focused on was the realized volatility (RV) indicator. Arab Chain analyzed, "The 7-day realized volatility (RV-7d) indicator rose to 0.410 compared with before," adding, "This means the market is showing sharp short-term activity." It continued, "Such movements are often triggered by speculative trading or derivatives position readjustments," and, "Phases in which short-term volatility rises rapidly typically occur when market expectations change or investors react sensitively to news or economic indicators."

It also mentioned medium-term volatility. Arab Chain said, "The 30-day realized volatility (RV-30d) indicator is at about 0.360 and remains relatively stable," adding, "This means that even if daily price fluctuations are large, the monthly trend does not show clear instability." It added, "A volatility inversion in which RV-7d exceeds RV-30d is a typical signal that marks entry into a 'liquidity-testing phase,'" and, "a range in which the market hesitates before determining a clear upward or downward direction."

The analysis said liquidity is key for Bitcoin prices to maintain an uptrend. Arab Chain said, "If short-term volatility continues to rise but RV-30d does not rise together, it means the market is entering a price-pressure zone," and, "in this case, if liquidity is maintained, it can lead to an upside breakout." It said, "(However) if momentum weakens, movements toward a downward adjustment may appear."