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.
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