Bitcoin (BTC) Headed for Massive Price Moves Soon, According to This Metric
Although typically regarded as a volatile asset with major price fluctuations, bitcoin has been stuck in a tight range for the past several days.
However, all that could change in the following days, at least according to similar historical developments.
- Aside from a price dive on May 12 to a two-month low, BTC’s recent performance has been rather uneventful.
- The asset went to a high of $27,600 last week and then dipped by a grand, which was the most substantial price move of the past ten days or so.
- Somewhat expectedly, the 7-day price range of the cryptocurrency has gone into rarely-seen territory. Glassnode informed that this metric is at 3.4% now, which is “one of the tightest of the last 3 years.”
- Although rare, this development is not without previous examples. The analytics company provided a few of those, including one in July 2020 and another early this year (January 2023), both of which were followed by substantial price moves.
- After the July 2020 stagnation, bitcoin went on a massive run that resulted in smashing the previous all-time high and charting a new one several months down the road. Following the January 2023 example, BTC shot up once again, albeit in a more modest fashion.
- Another similar situation transpired in late 2021 and early 2022. That one, though, was followed by a significant price retracement that drove BTC from its ATH of $69,000 to under $30,000 in a few months.
- Given the historical developments, Glassnode suggested that more volatility is in the cards for BTC but failed to make a prediction of whether it will be up or down.
The 7-day price range (3.4%) #Bitcoin has consolidated within is one of the tightest over the last 3yrs.
It is comparable to Jan 2023, and July 2020, both of which preceded large market moves.
This suggests high volatility is likely on the horizon.
https://t.co/VHIhAlOSWL pic.twitter.com/JZjvZe3yJa
— glassnode (@glassnode) May 22, 2023
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