Analytics Firm CryptoQuant Foresees Heightened Bitcoin Price Volatility Ahead

Leading blockchain analytics platform CryptoQuant has issued a market alert indicating Bitcoin may experience significant price fluctuations in the near term. The warning comes as on-chain metrics show unusual activity in exchange flows and miner positions, historically reliable indicators of impending volatility. Market analysts suggest traders should prepare for potential wide price swings as Bitcoin’s price action could test both support and resistance levels with increased intensity. This volatility prediction follows Bitcoin’s recent consolidation phase after failing to sustain momentum above key psychological price levels.

In brief

• 170,000 BTC moved by short-term holders.
• Panic and rushed sales weaken the market.
• Long-term holders remain stable and limit sales.
• The market oscillates between purge and rebound.

Short-term Bitcoin holders: catalysts of a forecasted turbulence

Speculators act like harbingers of bad news. CryptoQuant confirms it: short-term holders (STH), those who acquired Bitcoin less than six months ago, are massively moving their assets. Nearly 170,000 BTC in motion, an unprecedented volume since late 2021. Why does this number cause worry? Because every significant migration from this cohort has historically preceded violent market jolts.

These holders embody extreme responsiveness to market narratives. The recent Bitcoin correction below $75,000 was enough to trigger rushed sales.

On average, 930 bitcoins leave their wallets daily for exchanges. A frenzy fueled by fear of losses or the lure of quick gains. Their psychology weakens the market: their tolerance for fluctuations is low, and their decisions are impulsive.

Yet, history does not always repeat itself identically. The CryptoQuant chart shows that previous STH movements have sometimes led to rallies as well as crashes.

In December 2020, a similar dynamic preceded a 70% rebound. This time, uncertainty reigns. One thing is certain: their current activity paints an unstable landscape ready to tip.

Facing the storm, long-term holders anchor the ship

At the heart of the turbulence, another category of investors embodies the calm before the storm: long-term holders (LTH). These players, often called diamond hands, do not yield to the upheaval. Their daily sales? Only 529 bitcoins, almost half the amount of STH. A striking contrast, revealing an unwavering conviction.

LTH play the role of an invisible stabilizer. Their strategic inertia balances the excesses of speculators.

While STH fuel volatility, their resistance limits the extent of corrections. CryptoQuant also highlights that this long-term conviction persists despite the shocks. Proof that smart money does not flee but observes.

This divide between patience and panic outlines a classic “shakeout” scenario. The less experienced abandon the ship, while veterans consolidate their positions. For CryptoQuant, this correction is therefore not an exodus, but a necessary purge. A tightening where the market sheds its fragile participants, preparing the ground for a later phase.

Between STH, ready to sell at the first tremor, and LTH, unshaken, Bitcoin crosses a zone of extreme tension. CryptoQuant, with its data, offers a compass in this fog. The promised volatility could reward the bold who think that Bitcoin will follow gold as much as it could punish the impatient. In this theater, one lesson persists: the fiercest storms often reveal the strength of the moorings. Each investor must choose their side.

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