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Bitcoin (BTC) Might See Big Move, Here's Area of Interest per Glassnode

Wed, 05/24/2023 - 16:00
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Tomiwabold Olajide
High volatility for Bitcoin (BTC) is on horizon
Bitcoin (BTC) Might See Big Move, Here's Area of Interest per Glassnode
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Will Clemente, a crypto analyst, has drawn attention to a major compression on the BTC chart, which he infers to be a "big move soon."

According to on-chain analytics firm Glassnode, high volatility for Bitcoin is on the horizon as liquidity and volumes decline across the board. It notes that with price ranges compressed and on-chain transfers at cycle lows, BTC is unlikely to sit still for very long.

As reported, Glassnode mentioned earlier in the week that the seven-day price range that Bitcoin has consolidated within is one of the tightest over the last three years.

This is comparable to January 2023 and July 2020, both of which preceded large market moves. The on-chain analytics firm stated this might suggest high volatility was imminent.

At the time of writing, Bitcoin was down 3.91% in the last 24 hours at $26,295.

Here are areas of interest, per Glassnode

Glassnode stated that based on its recent evaluation of common technical pricing models, the Bitcoin spot price remains marginally above the currently equivalent 111 DMA and 200 WMA, providing a region of support.

In this context, the 111 DMA and the 200 MA both coincide with the $26,200 level.

Glassnode analysts say in the event of a volatile move below the aforementioned levels, the confluence between the 365 DMA ($22,300) and 200 DMA ($22,600) can then be considered an area of interest for price action.

In light of this, a well-defined range is seen between $22,300 and $26,200.

Additionally, Bitcoin is nearing historical oversold levels as the current adjusted MVRV ratio is coinciding with what were historically oversold levels in the 2018, 2019 and March 2020 cycle lows, Glassnode highlighted.

In the intermediate time frame, crypto analyst Ali spots an important wall between $23,200 and $24,000.

"Notice that Bitcoin appears to be losing all major areas of support. This increases the probability of a correction to the next important demand wall between $23,200 and $24,000, where 850,000 addresses had previously purchased 340,000 BTC," Ali tweeted.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.