As the weekly close on February 23 approached, Bitcoin (BTC) was looking towards the $95,000 mark, fueled by indications of significant BTC purchases from the business intelligence company, Strategy.
BTC/USD 1-hour chart. Source: Cointelegraph/TradingView
Strategy CEO Saylor Suggests Increased BTC Exposure
According to data from Cointelegraph Markets Pro and TradingView, the BTC/USD pair experienced a relatively calm weekend following a period of volatility triggered by the significant hack of cryptocurrency exchange Bybit.
As the aftermath of the event unfolded, Bitcoin was able to stabilize, with traders shifting their focus elsewhere.
“The range remains constrained,” popular trader Daan Crypto Trades remarked in one of his weekend updates on X.
“At the same time, volatility is on a downward trend as prices are increasingly compressed. Even amidst yesterday’s turmoil, the price closed at the same level as it has for the past two weeks.”
BTC/USDT perpetual swaps 1-day chart. Source: Daan Crypto Trades/X
Daan Crypto Trades and others observed that open interest across exchanges had decreased, hitting its lowest level since February 9, according to data from monitoring platform CoinGlass.
“Typically, a lower open interest along with a higher price indicates a good reset, even if it is just on a shorter timeframe. Still waiting for spot market activity to determine the next steps,” he concluded.
Exchange BTC Futures Open Interest (screenshot). Source: CoinGlass
The excitement around Strategy stemmed from CEO Michael Saylor sharing a chart of the company’s current BTC holdings — a typical indication that additional buying has occurred or is anticipated.
“I believe this doesn’t represent the activity I completed last week,” Saylor remarked about the latest chart.
Strategy BTC holdings. Source: Michael Saylor/X
Bitcoin Research Predicts “Significant Market Movements”
Discussing volatility further, on-chain analytics firm Glassnode reported that Bitcoin’s implied volatility has rarely hit such low levels.
Related: Bitcoin rebounds — Does data indicate a surge to $100K and beyond?
Implied volatility measures the standard deviation of market returns relative to their mean.
“Bitcoin’s 1-week realized volatility has dropped to 23.42%, approaching historical lows,” it stated on February 21.
“In the last four years, it has dipped below this level on just a few occasions – for instance, in October 2024 (22.88%) and November 2023 (21.35%). Similar compressions historically led to significant market movements.”
Bitcoin 1-week realized volatility. Source: Glassnode/X
Glassnode also highlighted multi-year lows in Bitcoin options implied volatility — a phenomenon that has previously been followed by “major volatility spikes.”
“Meanwhile, the longer-term implied volatility remains elevated (3m: 53.1%, 6m: 56.25%),” it noted.
This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers are encouraged to conduct their own research before making any decisions.
