According to this indicator, Bitcoin (BTC) soon faces massive price movements

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Von: Krypto News Österreich

Although Bitcoin is usually seen as a volatile asset with strong price fluctuations, it has remained in a tight range in the past few days.

But all of this could change in the next few days, at least if you start from similar historical developments.

  • Apart from a drop in price on May 12, the recent performance of BTC was rather uneventful.
  • The asset reached a maximum of $ 27,600 last week and then fell many times over, which has represented the strongest price movement of the last ten days.
    • As expected, the 7-day price range of the cryptocurrency has penetrated into a rarely seen area. Glassnode announced that this key figure is currently 3.4 %, which is "one of the narrowest of the past three years".
  • although rare, this development is not without earlier examples. The analysis company provided some of them, including one in July 2020 and another early this year (January 2023), both of which led to significant price movements.
  • After stagnation in July 2020, Bitcoin experienced a massive upswing that led to the previous all -time high and a new record high was reached a few months later. After the example of January 2023, BTC once again scored the height, albeit to a more modest extent.
  • Another similar situation occurred at the end of 2021 and early 2022. However, this was followed by a significant price decline, the BTC drove from its ATH from $ 69,000 to less than $ 30,000 within a few months.
    • In view of the historical development, Glassnode indicated that a higher volatility could be expected at BTC, but could not make a forecast as to whether the volatility would increase or fall.

The 7-day price range (3.4 %) #bitcoin has consolidated over the past three years and is one of the closest.

It is comparable in January 2023 and July 2020, which were preceded by both major market movements.

This indicates that high volatility is likely to be evident.

📊 https://t.co/vhihaloswl 22. May 2023

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