Bitcoin’s Price Range Narrows: What to Expect – Market Surge or Correction?
The cryptocurrency market has entered a phase of relative stability, with Bitcoin (BTC), the leading digital asset by market value, showing limited price fluctuations.
The price of Bitcoin started the week in decline, experiencing a 0.66% drop in the past 24 hours, reaching $26,866. According to Glassnode, an on-chain analytics firm, the price range between the highest and lowest points over the seven days leading up to May 21 was 3.4%.
The 7-day price range (3.4%) #Bitcoin has consolidated within is one of the tightest over the last 3yrs.
It is comparable to Jan 2023, and July 2020, both of which preceded large market moves.
This suggests high volatility is likely on the horizon.
📊 https://t.co/VHIhAlOSWL pic.twitter.com/JZjvZe3yJa
— glassnode (@glassnode) May 22, 2023
This range is one of the narrowest observed in the past three years, comparable to the sluggish trading periods of January 2023 and July 2020. Glassnode also predicts a forthcoming surge in market volatility, noting the historical correlation between tight price ranges and significant market movements.
Renowned trader Peter Brandt, however, anticipates the possibility of one more market correction before Bitcoin enters an upward trend. Brandt acknowledges that this is merely speculation and emphasizes the need for caution and skepticism in the face of self-proclaimed experts.
Perhaps one more shake out break, then thrust higher. But hey, that’s just a guess, and guessing is the best we have to offer. If anyone is dogmatic about their brilliance, turn and run, protecting your wallet. pic.twitter.com/bnJN1zpzaH
— Peter Brandt (@PeterLBrandt) May 22, 2023
He advises individuals to protect their financial interests and remain wary of dogmatic claims.
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Furthermore, analyst “Carl from the Moon” has identified a symmetrical triangle pattern, often indicative of consolidation. Based on the direction of the price breakout, he suggests potential targets of $25,000 or $29,000.
While technical indicators hint at an impending significant price shift for Bitcoin, Glassnode highlights the lackluster performance of network settlement compared to bullish market conditions.
On May 20, the total daily transfer volume on the Bitcoin network reached $2.73 billion, signaling lower network activity compared to the prominent bull market of 2021.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
