Although often considered a volatile asset with large price fluctuations, Bitcoin has been trapped in a narrow range for the past few days.
However, all of that could change in the coming days, at least based on similar historical patterns.
In addition to the price drop on May 12 to a two-month low, the recent performance of BTC has been relatively stable. The asset reached its highest level at $27,600 last week and then experienced a significant decline, marking the most notable price volatility in the past ten days or longer. As expected, the 7-day price range of the cryptocurrency has entered rare territory. Glassnode reports that this figure currently stands at 3.4%, which is "one of the tightest ranges in the past three years."
Although rare, this development is not unprecedented. The analytics firm provided a few examples, including one in July 2020 and another earlier this year (January 2023), both of which resulted in significant price fluctuations. After the consolidation period in July 2020, Bitcoin continued to surge, breaking previous all-time highs and establishing new ATHs in the following months. In the example from January 2023, BTC experienced another sharp increase, albeit at a more modest level.
A similar situation occurred in late 2021 and early 2022. However, after that scenario, a significant price decline occurred, pushing BTC from its ATH of $69,000 to below $30,000 within a few months.
Based on these historical patterns, Glassnode suggests that BTC will experience more volatility but cannot predict whether it will rise or fall.
