bitcoin has recently been quoting within a historically narrow price rank. This is what generally follows such periods of compressed volatility.
bitcoin's action and supply are limited in a narrow range
In a new one <a target="_blank" href="https://x.com/glassnode/status/1882391897408479276″ target=”_blank” rel=”noopener nofollow”>mail In x, the Glassnode chain analysis firm has discussed how btc has not witnessed a very acute price action recently. Below is the shared table by the analysis firm that shows the historical instances in which the 60 -day price range was narrower than the current one (in terms of percentage swing).
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2025/01/Bitcoin-in-a-historic-narrow-range-soon-volatile-explosion.jpeg" alt="bitcoin price range” width=”2400″ height=”1350″/>
Looks like there haven't been many instances of a tighter price range in history | Source: <a target="_blank" href="https://x.com/glassnode/status/1882391897408479276/photo/1" target="_blank" rel="noopener nofollow">Glassnode on x
From the graph, it is visible that there have only been a few periods in which the asset has negotiated between a narrower range for a period of 60 days than the last two months. This highlights how tight the price action for bitcoin recently has been.
Interestingly, the instances with a more compressed price range led to especially volatile periods for the asset. Therefore, it is possible that the last obsolete period also ends up relaxing with a really acute swing in cryptocurrency.
The decompression of volatility after a narrow range has not always been bullish; However, the famous accident of November 2019, which marked the lower part of the bearish market of that cycle, occurred after a historically obsolete action in the value of the currency.
The adjusted price range is not the only indication that bitcoin could be due to volatility in the near future, since Glassnode has indicated that a significant percentage of the btc supply is concentrated around the current price level.
<img loading="lazy" decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2025/01/1737749719_468_Bitcoin-in-a-historic-narrow-range-soon-volatile-explosion.jpeg" alt="Supply density made by bitcoin” width=”2400″ height=”1351″/>
The data for the Realized Supply Density in the +15% to -15% price range | Source:<a target="_blank" href="https://x.com/glassnode/status/1882391900457762915/photo/1" target="_blank" rel="noopener nofollow"> Glassnode on x
The previous table shows the data for the “supply density performed”, which is a metric in the chain that tells us about the percentage of the asset of the asset that was last bought within a range since it surrounds the current value of bitcoin .
In the graph, the analysis company has selected 15% as a range, which means that the indicator shows the amount of supply that was last transferred between +15% and -15% since the last price.
The supply density made for this price range has historically followed a curious pattern: a gradual ascent in its value has corresponded to a “volatility construction” phase for btc and a subsequent negative after a “volatility release”.
Recently, bitcoin has been within the previous phase since the perspective of this indicator. About 20% of the btc supply is concentrated in the ± 15% range at this time, which is a remarkable value. “This creates the amplified market volatility potential as the investor profitability changes,” says Glassnode.
btc price
At the time of writing, bitcoin is floating around $ 105,700, more than 5% in the last seven days.
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Looks like the price of the coin has seen an uplift during the past day | Source: BTCUSDT on TradingView
Outstanding image of Istock.com, Glassnode.com, TrainingView.com Chart
