Bitcoin price volatility 'imminent' as speculators move 170K BTC — CryptoQuant

A recent warning from onchain analytics platform CryptoQuant suggests that Bitcoin (BTC) may experience significant volatility due to a large movement of coins onchain. In a blog post titled "Quicktake" on April 18, CryptoQuant highlighted the potential for a shake-up in the Bitcoin market.

According to CryptoQuant, Bitcoin short-term holders (STHs) are indicating that the current calm behavior in BTC price may be short-lived. The platform revealed that approximately 170,000 BTC owned by entities who acquired them between three and six months ago have started to circulate. This movement of around 170,000 BTC from the 3-6 month holder cohort is seen as a signal that significant volatility could be on the horizon.

A chart accompanying the data shows the impact of previous events involving STHs, with the latest movement being the largest in volume since late 2021. The direction of the price has varied in response to past movements, showing both upward and downward trends. The conclusion drawn by CryptoQuant is that volatility is imminent.

The recent selling pressure on Bitcoin has been attributed to speculators by CryptoQuant. STH entities are known for their sensitivity to sudden market shifts and changing narratives. The recent downside in BTC price has led to panic selling by the cohort, which consists of entities that purchased Bitcoin within the past six months.

In a separate post, another contributor at CryptoQuant noted that STHs have been the main source of selling pressure on Bitcoin, averaging around 930 BTC per day being sent to exchanges. On the other hand, Long-Term Holders (LTH) have been moving approximately 529 BTC per day, indicating more stability in their conviction to hold onto Bitcoin.

The situation has been described as a "classic shakeout" by CryptoQuant, with a breakdown occurring as a result of nervous short-term and mid-tier holders reacting to the current market conditions. This analysis aims to differentiate between short-term fear-driven selling and long-term holders maintaining their conviction in Bitcoin.

In conclusion, the data presented by CryptoQuant suggests that Bitcoin may be on the brink of significant price volatility due to the movements of coins by short-term holders. It is important to note that all investment and trading decisions involve risks, and individuals should conduct their own research before making any investment decisions.

Source: https://cointelegraph.com/news/bitcoin-price-volatility-imminent-speculators-move-170k-btc-cryptoquant?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound

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