Glassnode says big bitcoin price swings may be coming
Glassnode, a prominent analytics firm, has recently shared its insights on Twitter regarding the price dynamics of bitcoin, the leading cryptocurrency by market cap.
According to Glassnode analysis, bitcoin has displayed exceptional stability over the past week, with a narrow trading range of 3.4%.
This noteworthy consolidation phase represents the tightest range observed in the past three years. Drawing parallels to similar market consolidations in July 2020 and January 2023, Glassnode’s experts believe that significant market movements often follow such periods of price stability.
Consequently, the current state of bitcoin’s stability may serve as a potential indicator of future extreme volatility in the near future.
Adding to the conversation, seasoned commodities trader Peter Brandt took to Twitter to express his perspective on bitcoin’s price trajectory.
Brandt anticipates that bitcoin may experience another shakeout phase before embarking on a sustained upward trend. His insights provide additional context for market participants seeking to understand bitcoin’s potential short-term price movements.
As of press time, bitcoin is trading at $26,876, displaying a slight 0.33% decrease in the past hour, according to data from CoinMarketCap.
Bitcoin’s volatility levels are relatively stable as the Bollinger bands, used in estimating volatility, now move at a relatively close distance from each other. Bitcoin’s relative strength indicator is also above its average line, indicating a bullish trend.
Glassnode’s analysis of bitcoin’s recent stability, coupled with James Bullard’s predictions regarding interest rate hikes and Peter Brandt’s insights on price shakeouts, contribute to the ongoing discussions surrounding the future trajectory of bitcoin’s price in the cryptocurrency market.