According to data tracked by analytics firm Glassnode, bitcoin’s price range was stuck at its lowest level in months, with the difference between its highest and lowest prices reached in the seven days to May 21 being just 3.4%, the widest in the past three years. One of the narrow trading ranges.
“This is comparable to January 2023 and July 2020, both of which preceded large market moves. This suggests that high volatility may be on the horizon,” Glassnode tweeted earlier Monday.
Options-based volatility measures for Bitcoin and Ethereum have also hit new all-time lows recently. The narrow trading range suggests that neither bullish nor bearish outlooks dominate price action. This often happens when markets face competing influences and narratives.
While lingering U.S. banking problems have favored gains in perceived safe-haven assets like bitcoin, the unresolved impasse in debt-ceiling talks and a recovery in the U.S. dollar index suggest otherwise.