Bitcoin recently exchanged in a historically narrow price range of 60 days. Here is what generally follows such periods of compressed volatility.
Bitcoin price action and price offer are both limited in a tight range
In a new article on X, the Glassnod chain analysis company explained how BTC was not witness to many net net prices recently. You will find below the graph shared by the analysis firm which shows the historical cases where the price range of 60 days was narrower than that current (in terms of swinging of swing).
Looks like there haven't been many instances of a tighter price range in history | Source: Glassnode on X
According to the graph, it is visible that there were only a few periods when the asset exchanged between a closer range during a period of 60 days than the last two months. This underlines how tight prices have been tight for Bitcoin recently.
Interestingly, the cases with a more compressed price range led to particularly volatile periods for the active. Thus, it is possible that the last expired period also ends up relaxing with a really clear swing in the cryptocurrency.
The decompression of volatility after a narrow beach has not always been optimistic; However, the famous accident in November 2019, which marked the bottom of the bear market in this cycle, occurred after a historically expired action in the value of the medal.
The tight price range is not the only indication that Bitcoin could be due to volatility in the near future, because Glassnode stressed that a significant percentage of the BTC offer is concentrated around the current price level.
The data for the Realized Supply Density in the +15% to -15% price range | Source: Glassnode on X
The above graph shows the data of the “supply density carried out”, which is a metric on a chain which indicates the percentage of the supply of the assets which was bought for the last time in a given beach surrounding the current Bitcoin value.
In the graph, the analysis company has selected 15% as a beach, which means that the indicator displays the amount of the offer which was transferred for the last time between + 15% and -15% compared to the last price.
The supply density made for this price range has always followed a curious model: a progressive ascent in its value A corresponding to a phase of “strengthening volatility” for BTC and a strong subsequent decrease in a “release of volatility”.
Recently, Bitcoin was inside the old phase from the point of view of this indicator. About 20% of the BTC power supply is concentrated in the range of ± 15% at the moment, which is a significant value. “This creates the potential for volatility of the amplified market as the profitability of investors changes,” notes Glassnode.
BTC price
At the time of writing the editorial staff, Bitcoin floats around $ 105,700, up more than 5% in the last seven days.
Looks like the price of the coin has seen an uplift during the past day | Source: BTCUSDT on TradingView
Istock.com star image, Glassnode.com, tradingView.com graphic
