Bitcoin has recently been trading inside a historically narrow 60-day price range. Here’s what usually follows such periods of compressed volatility.

Bitcoin Price Action And Supply Are Both Constrained In A Tight Range

In a new post on X, the on-chain analytics firm Glassnode has discussed how BTC hasn’t witnessed much sharp price action recently. Below is the chart shared by the analytics firm that shows the historical instances where the 60-day price range was narrower than the current one (in terms of percentage swing).

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

From the graph, it’s visible that there have only been a few periods where the asset has traded between a narrower range during a 60-day period than the last two months. This highlights just how tight the price action has been for Bitcoin recently.

Interestingly, the instances with a more compressed price range all led to especially volatile periods for the asset. Thus, it’s possible that the latest stale period might also end up unwinding with a really sharp swing in the cryptocurrency.

The volatility decompression after a narrow range hasn’t always been bullish; however, the famous November 2019 crash, which marked the bottom of that cycle’s bear market, occurred after historically stale action in the coin’s value.

The tight price range isn’t the only indication that Bitcoin could be due to volatility in the near future, as Glassnode has pointed out that a significant percentage of the BTC supply is concentrated around 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 shows the data for the “Realized Supply Density,” which is an Go to Source to See Full Article
Author: Keshav Verma

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