Buckle Up: Glassnode Expects Bitcoin’s Volatility to Soar

Weekly Crypto Roundup: ETH, XRP, BNB Price Updates.

Bitcoin has managed to remain fairly stable amidst various financial ups and downs such as the debt ceiling crisis, the banking crisis, and sky-high inflation. However, according to Glassnode, a reliable on-chain analytics firm, this period of stability may not last long, and we can expect a surge in volatility.

Glassnode points out that Bitcoin’s volatility is likely to increase due to declining liquidity and trading volumes across the market. With price ranges becoming tighter and tighter, and on-chain transfers at their lowest levels, Bitcoin is unlikely to remain stagnant for an extended period.

Since breaching $27,000 on the 12th of May, BTC has been moving sideways and previous data from Glassnode indicated that Bitcoin’s price range over a seven-day period reached record low levels. It highlighted that the difference in Bitcoin’s price was one of the smallest seen in the past three years.

The current price action looks similar to Bitcoin’s movement in January of 2023 and going further back, also similar to July 2020. Both these periods of sideways movement were followed by strong moves, which shaped future price action, giving birth to serious trends. If history repeats itself, we are in for a ride… either uphill or downhill.

Similar to Bitcoin, most altcoins are in balance, without significant developments or bursts of volatility. Ethereum (ETH) is trading at $1,816, with a 0.59% gain over the last 7 days; Binance Coin (BNB) is down 1.33% in the same period, trading at $305 at the time of writing. Ripple’s XRP is in balance at +0.18% for the last 7 days but it has gained 2.53% over the last 24 hours.

The biggest losers in the CoinMarketCap Top 10 are Cardano, with -3.08%, Dogecoin with -3.79%, and Solana with -5.55%.

Chart Analysis – BTC/USD

Bitcoin is currently changing hands at $26,515, just below the previous support at $27,000. On May 12, it looked like the bears won the battle for $27K and that price will continue lower; however, this wasn’t the case and the bulls quickly took the pair back up.

Currently, we have a similar situation: Wednesday the price dropped but now it looks like it’s headed for the same $27K level. There are a few bearish factors that may influence the pair’s movement going forward: the 50-day Moving Average is above the price, there’s a bearish trend line forming, and the $27K level can be considered a form of resistance.

Despite these bearish signs, moves north are not out of the question. The price is bouncing on the lower Bollinger Band and the pair has been squeezing in a tight range for quite a while now. Tight ranges are usually followed by strong directional moves, so buckle up for volatility in the near future.