The on-chain analysis platform, Glassnode, recently took to Twitter to share some new insights about the crypto market leader Bitcoin (BTC), and explained that some high volatility is likely on the horizon for the crypto. This conclusion was drawn based on BTC’s price movements over the past week.
BTC 7-day price high and low (Source: Twitter)
According to the post, the 7-day price range that BTC has been consolidating within is the tightest seen in the past three years. Glassnode added that this consolidation for BTC can be compared to those from January of 2023 and July of 2020.
The analysis platform added that it is worth noting that these consolidation phases for BTC preceded large price moves. This may lead traders to assume that there could be some volatility in the cards for BTC in the near future.
Although things might get rocky for BTC, Glassnode added in a separate Tweet that the magnitude of drawdowns experienced across BTC’s recent upswing in price action remains marginal when compared to other cycles. The bull peak drawdown for 2011-2013 stood at -71.2%.
Bitcoin bull market correction drawdowns (Source: Twitter)
In addition to this, the 2015-2017 and the 2018-2021 bull peak breakdowns stood at -36% and -62.6% respectively. To put this into perspective, the 2022+ bull peak breakdown stands at only -18.6%, according to Glassnode’s data.
Meanwhile, CoinMarketCap indicated that at press time, BTC was trading hands at $26,835.02 at press time. This followed a 0.90% price drop in BTC’s price over the past 24 hours. BTC was also down by more than 2% over the past week of trading.
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Source: Cryptocurrency - investing.com
