BTC price moves this year display the same pattern as its 2023 rally while investors watch for BTC to reach $100,000. The data platform Glassnode shows Bitcoin trades in a constrained pair of prices between $90,000 and $110,000 ready to produce future market activity levels.
Glassnode observed BTC/USD spending two months between $90,000 and $110,000 in their latest X update. In recent times market stability within the cryptocurrency field remains an unusual occurrence. According to Glassnode research the market has not experienced this pattern of Bitcoin price compression since October 2023.
Bitcoin’s 60-Day Range Shrinks, Signaling Potential Market Volatility
According to data the 60-day Bitcoin price movement shows a remarkably small movement range. According to their analysis the platform found that price ranges that stayed tight typically triggered more market volatility.
Since 2019 Bitcoin’s 60-day price range at 19% has only occurred five times and this trend matches its current limit. Bitcoin price jumped from $30,000 in October 2023 to $42,000 by the end of December which represented a stunning 40% increase during just two months.
According to Glassnode data BTC owners tend to hold large amounts of tokens when prices are close to today’s market rate. A 20% segment of the available Bitcoin supply now distributes itself within 15% of the present market prices and this supply pattern will influence the trading environment. Glassnode explained:
“This creates the potential for amplified market volatility as investor profitability shifts.”
Supply became concentrated through the latest market consolidation so price swings are more likely to happen.
Bollinger Bands Show Lowest Bitcoin Volatility Since January 2024
Glassnode analyzed their latest findings from their newsletter “The Week Onchain” sent on January 21. According to the published study investor revenues react strongly to small price changes when large blocks of supply stay close to spot market rates which increases market instability. Glassnode says:
“After the Bitcoin price peaked in December, it started to consolidate, creating a dense concentration of supply with a cost basis close to the spot price.”
The market shows limited sudden price changes while maintaining low price movement compared to past history. The Bollinger Bands indicator reveals the smallest volatility zone in Bitcoin trading today since last January.
Trader and analyst Matthew Hyland first detected this rare activity during his analysis in early February. According to John Bollinger and his observations Bitcoin showed textbook band compression patterns on its daily chart during December 2023. When traders behave this way they anticipate a major market movement is about to happen.
Bitcoin maintains $100,000 levels as experts expect wild swings though traders predict the market breaking out either past $110,000 or below $90,000.
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