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Bitcoin Transitions Into A Higher Volatility Regime After Prolonged Compression: See How

News Feed - 2026-01-20 04:01:44

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. After weeks of unusually tight price action, Bitcoin is set to break free from its prolonged volatility compression. With price now expanding beyond its narrow range, liquidation activity is increasing, and stronger reactions to macro and on-chain catalysts are renewing momentum. This shift suggests that BTC is entering a phase where wider daily ranges and heightened market participation are likely to dominate the near-term structure. What This Volatility Expansion Means For The Next Major Trend


Bitcoin has officially entered a new volatility regime, and a major change in market structure is driving the shift. Analyst AliceMia has revealedon X that, for the first time, options open interest has surpassed futures open interest, signaling that price action is no longer dominated primarily by leveraged speculation and liquidation cascades. In contrast, BTC is now being influenced more by hedging flows, dealer positioning, and volatilitystructures. Related Reading Bitcoin Holds Key Support As Weekend Liquidity Sets In — $98,200 And $107,500 In Focus 2 days ago


As a result, the pricebehavior is changing. Rather than clean, straight-line breakouts fueled by forced liquidations, the market is seeing more magnet-level reactions around major strike levels and expiries. BTC price is moving from a casino marketto a structured market. This is usually what happens before the bigger and more sustained moves happen.


Bitcoin continues to consolidate inside the weekend range, which often acts as engineered liquidity during the following week. Crypto trader Lennaert Snyder highlightedthat the preferred scenario for long trades would be if BTC continues to range higher through Sunday and sweeps the weekend liquidity on Monday/Tuesday.


According to Snyder, all eyes are on the US Open, and he will only prolong the sweep of the weekend liquidityif BTC breaks the structure by regaining the $95,820 high. Only after that structural break would long positions make sense, with the monthly high as the primary target. From there, a higher price is expected. 


On the downside, the $94,635 low is still the level that must hold. As long as the price is above that on the higher timeframes, the bullish structure remains intact. However, if BTC loses that level and trades back into the previous range, momentum is likely to flip bearish. In that case, after confirmation, a short setup could become valid. Trader Snyder concluded that, as for Ethereum, the plan remains unchanged from the previous one. Deviation Confirmation Could Trigger The 2026 Super Rally


The Bitcoin weekly plan is unfolding exactly as expected. Trader Alienopstrading also statedthat shorts remain the focus for now since the $110,000 to $120,000 zone. BTC’s price has entered a minor consolidation and will see a moveakin to what the analyst mapped out earlier. Related Reading Bitcoin Price To $100K: Why All Eyes Are On The Short-Term Holders 2 days ago


Once the lows are swept and BTC confirms the deviation, we could finally witness the 2026 super rallythat many have been anticipating. “Just like I give you the top, I also want to give you the bottom,” Alienopstrading noted. BTC trading at $93,143 on the 1D chart | Source: BTCUSDT on Tradingview.com Featured image from Pixabay, chart from Tradingview.com