Data shows that Bitcoin has recently been stuck in a historically tight 14-day range, a situation that has seen large swings in the past.

Bitcoin's 14-day range has been extremely narrow recently

According to data from analytics firm Glassnode, the 14-day range has only been narrower than it is now during less than 2% of the cryptocurrency’s entire trading cycle. The “14-day range” here refers to the percentage difference between the top and bottom recorded in Bitcoin’s price over the past two weeks.

This indicator can tell us how volatile the price of an asset has been in the recent past. When its value is high, it means that the currency has observed larger fluctuations over the past fourteen days, and therefore, the price has seen higher volatility.

On the other hand, a low value for this indicator means that the cryptocurrency is not that volatile, as its price has changed by only a small percentage over the past few weeks.

Now, below is a chart showing the trend of Bitcoin’s 14-day range throughout the asset’s history:

As shown in the above chart, Bitcoin’s 14-day range is currently just 4.6%, which means that the local highs and lows over the past two weeks have only differed by 4.6%.

This is an extremely low value compared to general standards for BTC. In the chart, Glassnode also marks instances where the indicator observed lower values ​​than it does now.

As can be seen from the purple bars, it is rare for Bitcoin to trade in a tight range. To put the numbers into perspective, there were only 2,176 hours in the asset’s lifecycle with a low indicator value, which is equivalent to about 1.9% of the entire trading lifecycle of the oldest cryptocurrency.

This violent move could go in either direction, as both crashes and rallies follow a narrow range. But the strange thing is that most of these moves are upward.

The last time this pattern occurred was in January, just before the current rally began. It looks like the narrow range back then also broke out into a sharp advance.

If history is any guide, the low of the current 14-day range could mean that Bitcoin could see another big move in the near future. Of course, if priorities are taken into account, such a move is more likely to be to the upside.

Bitcoin Price

As of this writing, Bitcoin is trading around $30,900, up 1% over the last week.