Bitcoin In Historic Tight Range: Volatile Explosion Soon?

Bitcoin was recently traded within a historic tight price range for 60 days. Here is what usually follows such periods of compressed fluctuations.

Bitcoin price movement and supply are in a narrow range

In new mail On X, the analytics company discussed the Glassnode series how BTC has not seen a lot of sharp price movement recently. Below is the graph that was shared by the Analysis Company, which shows the historical cases in which the price range was for a period of 60 days narrower than the current range (in terms of the percentage of swinging).

Looks like there haven't been many instances of a tighter price range in history | Source: Glassnode on X

From the graph, it seems that there were only a few periods, as the original was circulated between a narrower range during a period of 60 days compared to the past two months. This highlights how tight price of the price for Bitcoin recently.

Interestingly, cases with the most pressure price range all led to particularly volatile periods of the original. Thus, it is also possible to end the last period with a decline with a really sharp swing in the encrypted currency.

Reducing the pressure of fluctuations has not yet been always upscale bullish; However, the famous collapse in November 2019, which represents the lower part of the descending market for that tournament, occurred after an old movement historically in the value of the currency.

The narrow price range is not the only indication that bitcoin may be due to fluctuations in the near future, as Glassnode indicated that a large percentage of bitcoin supply is concentrated on the current price level.

The data for the Realized Supply Density in the +15% to -15% price range | Source: Glassnode on X

The above chart displays the “achieved display density” data, a scale on the series that tells us about the percentage of the supplier of origin, which was last purchased within a specific domain surrounds the current instant bitcoin value.

In the graph, the Analysis Company chose 15% as a range, which means that the index shows the amount of the supply that was converted last time between +15% and -15% of the latest price.

The density of the width achieved for this price range historically has followed a strange pattern: the gradual rise in its value may correspond to the “construction of BTC” phase and the sharp decline in the “volatility” stage.

Recently, Bitcoin was within the previous stage of the perspective of this indicator. About 20% of Bitcoin supply is concentrated in the range of ± 15% at the present time, which is a noticeable value. “This creates the possibility of market fluctuations with the changing profitability of investors,” Glasnoud notes.

Bitcoin price

At the time of writing this report, the price of Bitcoin was trading around $ 105,700, an increase of more than 5 % over the past seven days.

Looks like the price of the coin has seen an uplift during the past day | Source: BTCUSDT on TradingView

Distinctive photo from istock.com, glassnode.com, tradingView.com chart