According to CryptoQuant, the current Bitcoin price trend is forming a pattern that was seen before during the market crash in 2018.

Other conditions, including the decrease in volume and amplitude of oscillation, also indicate the existence of this similarity.

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The movements of long-term holders of Bitcoin have decreased and the range of fluctuations in the price of this digital currency has also decreased.

If the current descending triangle pattern is completed and Bitcoin price crosses the support zone of this pattern, we will probably see the last price drop in this bear market.

Bitcoin is ready to start an explosive trend

On the other hand, Glassnod, another popular analytical source, believes that the price of Bitcoin is currently in a state similar to a compressed spring and is preparing for an explosive move.

Golsnod's reasons for making this claim are:

Bitcoin continues to stabilize

The aSOPR (adjusted profit and loss) index is near the neutral range and upside.

The impact of off-chain fluctuations

In addition to these cases, the continuation of Bitcoin trading in the range close to the $20,000 resistance will probably increase volatility.

Bitcoin price continues to stabilize

Glassnod notes that Bitcoin's price stabilization in a relatively tight range continues, with almost all weekly highs recorded within a 24-hour window.

In part of this Bitcoin analysis, it is stated:

Bitcoin price first fell to $18,338, rebounded to the weekly open, and then rebounded to $19,855 in response to higher-than-expected U.S. inflation data.

Other signs of increasing Bitcoin price volatility

Similar to this pressure density can be seen in another criterion; aSOPR index or adjusted output profit ratio. This indicator calculates the average realized profit/loss multiplied by the coins spent each day.

If the value of this indicator is around 1 in a bull market, it usually acts as support rather than support as traders tend to increase positions around their cost base. This strategy is usually referred to as Buy the Dip. Conversely, if the indicator value is around 1 in a bear market, it usually acts as resistance as traders try to exit their positions at their cost base.

Wait for Bitcoin off-chain fluctuations

 Based on this analysis of Bitcoin by Glassnode, it seems that derivatives markets are also about to fluctuate. That's because this week, short-term implied volatility option pricing has hit historic lows and is currently at 48%.

When this happened a few times in the past, we saw extreme price movements, often accompanied by deleveraging of the DiFi and derivatives markets.