Bitcoin has been stuck in a historically tight range recently, which could be a precursor to extreme volatility, according to data. In a recent tweet, analytics firm Glassnode explored how volatile Bitcoin has been of late. One way to quantify the volatility of Bitcoin is to take the highest and lowest points over a particular period and calculate their percentage difference. The period of interest in current discussions is the 30-day period, which means that volatility is calculated by checking the difference between the highest and lowest prices of the last 30 days. The recent value of the indicator is low compared to the metric’s historical norm. Interestingly, this is despite the new volatility seen in the BTC price due to the FUD around Binance and Coinbase under regulatory pressure.
While the asset may have experienced short-term volatile price moves after the uncertainty in the market surfaced, Bitcoin has generally traded in a tight range. Based on Glassnode’s chart, Bitcoin could be approaching a tight range that could lead to an extreme volatility of the asset.
The current price of Bitcoin is around $25,900, down 3% in the last week. However, it has been moving sideways since the crash.
