Bitcoin (BTC) Headed for Massive Price Moves Soon, According to This Metric

Although it is usually considered a volatile asset with large price swings, Bitcoin has been stuck in a narrow range for the past several days.

But all of that could change in the following days, at least according to similar historical developments.

• Aside from the May 12 price drop to a two-month low, BTC’s recent performance has been rather muted.
• The asset rose to a high of $27,600 last week and then fell by a significant amount, which was the biggest price movement in the past 10 days or so.
• Somewhat predictably, the 7-day price range for the cryptocurrency has gone into an area we rarely see. That measure is now at 3.4%, Glassnode reports, “one of the narrowest in the past three years.”
• Although rare, this development is not without previous examples. The analytics company has offered a few of these, including one in July 2020 and another early this year (January 2023), both of which were followed by significant price moves.
• After the July 2020 slump, bitcoin went on a massive trajectory that smashed a previous all-time high and charted a new one several months down the road. Following the January 2023 example, BTC rose again, albeit in a more modest manner.
• Another similar situation played out in late 2021 and early 2022. Despite this, a huge price rebound followed that pushed BTC from its ATH of $69,000 to under $30,000 in a matter of a few months.
• Due to historical developments, Glassnode suggested that there is more volatility in BTC but failed to predict whether it will go up or down.

Seven-day price range (3.4%) # Bitcoin It has been minimally standardized for the past three years.

It is similar to January 2023 and July 2020, both of which preceded large market moves.

This indicates the possibility of high volatility on the horizon.

📊 https://t.co/VHIhAlOSWL pic.twitter.com/JZjvZe3yJa

– glassnode (glassnode) May 22, 2023