The price of Bitcoin (BTC), the world’s largest crypto asset by market value, started the week in the red. It fell 0.66% in the last 24 hours to $26,866. The cryptocurrency market has entered a phase of monotony as Bitcoin remains in a narrow price range and exhibits one of the narrowest ranges seen in recent months. Meanwhile, analysts’ BTC comments and on-chain data attracted attention. Here are the details…
What does the data point to for Bitcoin?
On-chain analytics firm Glassnode reported that the price range is 3.4 percent, representing the difference between the highs and lows reached in the seven days leading up to May 21. This level of consolidation is comparable to previous periods of stagnant trading in January 2023 and July 2020. Glassnode commented on the situation:
The 7-day price range (3.4%) of Bitcoin is one of the narrowest in the last 3 years. It can be compared to January 2023 and July 2020, both of which precede major market moves… This suggests that there is a possibility of high volatility on the horizon.
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
Peter Brandt expects another concussion
In this way, Glassnode pointed to the potential for significant market change. Despite this prediction, famous trader Peter Brandt believes that Bitcoin may suffer another jolt before it enters an uptrend. However, he acknowledged the uncertainty of the situation, emphasizing that his opinion was only a guess, and advised caution. Brandt tweeted: “Maybe we’ll have another jolt, then we’ll be on the upswing. But, that’s just a guess, and guessing is the best we can offer.” said.
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
Another crypto analyst known as “Carl from the Moon” has identified a symmetrical triangle formation that is often associated with consolidation. Depending on the direction of the price breakout, it has set a target range of $25,000 to $29,000. Technical indicators are also suggesting that there could be a significant move on the horizon. Glassnode recently highlighted that network settlement activity has been lackluster compared to previous bullish market conditions. Reports released on May 20 showed that the total transfer volume on the Bitcoin network fell to $2.73 billion daily, pointing to lower network throughput compared to the big bull market experienced in 2021.
Looking at Brandt’s previous forecasts, he predicted that over the long term, the asset could rise to $50,000 by 2023 and exceed $100,000 by 2024 after falling below $34,000. These predictions show belief in Bitcoin’s potential to grow significantly in the coming years. As the cryptocurrency market is experiencing a period of consolidation and uncertainty, investors and analysts are watching closely for any signs of a breakout that could lead to a significant price action.
