- According to Glassnode’s latest update, BTC prices are moving tightly and the “volatility spread” is compressed.
- Glassnode says Bitcoin has entered a new phase where it is likely to experience high volatility.
According to information from a leading blockchain analytics company, the Bitcoin price may have entered a transition period for a bull run!
Bitcoin May Be Preparing for a Rise!
Leading crypto analytics company Glassnode says a series of chain-based metrics now show that Bitcoin is preparing to move into a new price range.
According to Glassnode’s latest update, BTC prices are moving tightly and the “volatility spread” is compressed, indicating that Bitcoin is ready to break its current equilibrium.
With BTC consolidating in a narrow range for almost two and a half months, Glassnode says Bitcoin has entered a new phase where it is likely to experience high volatility. The company notes that a potential short-term upward target could be at the $33,500 level, where many investors who bought in 2021 and 2022 would take profits;
“The Active Investor Cost Base is currently trading at the $33.5k level, providing a capped short-term upper bound price model that only accounts for investors actively participating in the market. When the Active Investor MVRV (market value realized value ratio) is at 0.83, it indicates that many investors who bought in 2021-2022 are still in the red and may wait for profit thresholds to liquidate their positions. Breaking above $33.5k shows that the average investor in the 2021-2022 cycle is now back in profit and reflects a psychological area of interest.”
By analyzing the cost base of long-term investors (LTHs), i.e. organizations that hold their cryptos for at least 155 days, Glassnode divides the bull market cycle into four stages – capitulation, transition, balance, and excitement.
According to the company, Bitcoin’s market cycle is currently in the “Transition” stage, with BTC trading slightly above LTHs’ cost base;
“The current market has reached the Transition stage, indicating a local increase in LTH spending levels this week. Depending on which direction volatility breaks next, we can use this tool to identify local periods of overheated conditions as observed through the eyes of Long Term Holders.”
