Is Bitcoin stuck in a tight range before a potential storm?
The data indicates that Bitcoin has been trading within a historically narrow range recently, which could be a sign of upcoming extreme volatility. Analytics firm Glassnode has analyzed the volatility of Bitcoin by calculating the percentage difference between the highest and lowest price points over a 30-day period. The current 30-day range has been only 10.7%, which is lower than the norm during the history of Bitcoin. Despite recent volatility due to regulatory pressure on Binance and Coinbase, Bitcoin has still traded in a narrow range overall. The analytics firm has highlighted instances where Bitcoin has traded within an even tighter 30-day range, and following these occurrences, Bitcoin has experienced extreme volatility. Currently, Bitcoin may be approaching a narrow range that could result in extreme volatility in the near term. At the time of writing, Bitcoin is trading at around $25,900, down 3% in the last week.