Bitcoin’s Choppiness Index Continues to Climb, Potential Breakout Looms

Implied volatility sits at multi-year lows while sideways price action hints at further consolidation ahead of key CPI data.

Bitcoin’s choppiness index has risen to 54 on the one-month timeframe, a level last seen just before the November 2024 election rally.

Bitcoin’s continued volatility compression has intensified with what analyst Checkmate refers to as the “choppiness index,” a metric that gauges sideways price consolidation.
Previous CoinDesk research has highlighted that bitcoin’s implied volatility remains at multi-year lows, which supports the sideways consolidation in bitcoin’s price.

This choppiness reflects bitcoin’s recent rangebound behavior. For the past few months, bitcoin has traded between $110,000 and its all-time high of $124,000, currently hovering around $113,000.

On a one-month timeframe, the volatility index has risen to 54. The last time it exceeded this level was in early November 2024, just before President Trump’s election victory triggered a surge in Bitcoin prices to over $90,000. At that time, the index peaked at 64. The previous time it exceeded this level was in early 2023, at the start of the current bull market cycle, when the index was at 57.

This pattern suggests there may still be room for further consolidation, especially as volatility continues to compress.