Bitcoin, which has been in a bearish trend since its high of $31,000 on April 14, has been consolidating in a narrow range for a long time.
While investors are waiting for BTC to rise again, popular analytics firm Glassnode evaluated the latest movements of BTC.
Sharing that as of May 21, the range in which BTC has consolidated in the last seven days, or the difference between the highest and the lowest, is 3.4%, Glassnode pointed out that this rate is one of the narrowest intervals of the last three years.
Comparing this situation of BTC with the data in January 2023 and July 2020, Glassnode said that Bitcoin consolidated in a narrow range in January 2023 and July 2020 as well, and large market movements were seen after this sluggish trade.
“The last 7-day price range where Bitcoin was consolidated was 3.4%, making it one of the narrowest ranges for BTC in the last 3 years.
This is comparable to the situation in January 2023 and July 2020, which precedes major market movements.
This lackluster trade indicates high volatility is likely on the horizon for Bitcoin.”
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
Stating that the situation of consolidation in the narrow gap is usually when the markets are competing, Glassnode stated that eventually some situations will remain in the background and cause a sharp expansion of the trading range, that is, high volatility.
At this point, the problems experienced by the banking sector in the USA allow Bitcoin to be seen as a safe and secure port and to rise, while the US's troubles in debt ceiling negotiations and the upward movement of the dollar index create a negative situation for BTC.
This causes markets to compete with each other, as Glassnode said, and BTC to be traded in a narrow range.
*Not investment advice.
