bitcoins (bitcoin) may soon see a burst of volatility and landfall bullish momentum comparable to January 2023:that’s what the on-chain data suggests.

In its latest edition weekly newsletterAnalyst firm Glassnode took a look at the narrowest Bollinger Bands since earlier this year, titled “The Week On-Chain.”

Bitcoin will experience “big moves” but direction remains unclear

BTC price has been moving in a tight range for about a month. It continues to fluctuate around the $30,000 mark. According to analyst Aksel Kibar, this is testing both bulls and bears.

“It seems $BTCUSD is testing the patience of many traders,” He wrote from Twitter.

“This is usually the case before the strong move, but I’m not sure of the direction. […] I know increased volatility is at hand, it will be important to be able to take advantage of the directional movement.”

bollinger bands, classic volatility indicatorshows Bitcoin’s sideways movements may end soon. Bollinger Bands use a standard deviation around a simple moving average to determine when an asset’s price will change its trend.

On the BTC/USD chart, upper and lower bands unusually close, more than any other time in 2023. “The digital asset market continues to experience significantly reduced volatility: Bollinger Bands are currently extremely tight,Reviews Glassnode.

The analysis adds that with a gap of only 4.2%, this is the most static BTC market since early January. At that time, Bitcoin suffered an all-month breakout and approximately 40% increase.

Bitcoin HODLers don’t want to sell

Glassnode continues by stating: very few sales at current levels, both in profit and loss. This lack of “realization” is occurring despite the BTC price increasing significantly since January; usually this phenomenon occurs in opposite periods, that is, shortly after the minimums of a cycle are reached.

The sum of profit and loss is currently approximately $290 million per day. The company explains:

“While this is a substantial sum in nominal terms, it is again comparable to the 2019 peak and October 2020, when the BTC price was 50% lower than it is now.

This shows that even though Bitcoin’s market cap is roughly twice as large today, investors with large profits or losses are extremely reluctant to move their coins on-chain.”