Glassnode: Bitcoin’s 5.8 Sigma Close: Strongest Since October 2023, Not a Reaction to a Crash

Glassnode announced that Bitcoin’s latest daily close, at 5.8 sigma relative to 30-day volatility, marks the strongest upward movement since October 2023.

Bitcoin (BTC) stood out statistically due to the magnitude of its latest daily close. In an assessment shared by Glassnode, it was noted that the movement reached a 5.8 sigma level compared to its own 30-day volatility.

The sigma value measures how far a price movement deviates from its normal range of fluctuation. Therefore, the 5.8 sigma level indicates that Bitcoin’s recent close was highly unusual compared to ordinary daily movements. Glassnode highlighted that this metric represents the largest upward movement since October 2023.

Bitcoin movement was not a post-crash reaction

According to Glassnode’s post, the last daily close of this magnitude for Bitcoin was seen in February. However, the movement at that time was a recovery following a 14% drop the previous day. The latest movement occurred without a preceding similar crash.

This distinction showed that the latest close should not be considered merely a reaction following a sharp decline. In the periodic return chart included in the post, positive movements are shown with green bars and negative movements with red bars, while the positive return bar stands out significantly alongside the price line in the final section.

Glassnode’s measurement highlights the magnitude and historical rarity of Bitcoin’s recent movement rather than just its direction. While the data does not offer a definitive conclusion that the movement will continue, it shows that the current close, at 5.8 sigma, stands apart from similar past periods.