With Bitcoin (BTC) at its helm, the world of cryptocurrencies has long been synonymous with unpredictability. Recent events and data analyses suggest that this top-tier cryptocurrency might be gearing up for significant price fluctuations in the near future.
On 20 October, the cryptocurrency market witnessed a remarkable 50% increase in Bitcoin’s trading volume, pushing its value just above the $30,000 mark—a level it hasn’t seen since August. This swift uptrend was a testimony to Bitcoin’s resilience and indicated a potentially volatile phase ahead.
Another significant event that deserves attention happened on 19 October when over 125,000 dormant Bitcoin coins suddenly changed hands. Experts say a massive shift of previously inactive coins has not been seen since May. This movement suggests that long-term holders capitalize on the recent price surge to reap profits.
Large-scale shifts of dormant coins often signal a change in market strategy or sentiment among Bitcoin’s investors. Such changes have historically been precursors to increased market volatility.
Pseudonymous CryptoQuant analyst Mignolet recently shed light on the impending market behavior, stating, “We might see significant volatility soon.” This statement was based on intuition and grounded in a deep analysis of Bitcoin’s daily chart.
For instance, the Chaikin Volatility indicator, which provides insights into an asset’s price fluctuation potential by measuring the range between its high and low prices, has been on an upward trend since 15 October. Similarly, Bitcoin’s Average True Range (ATR)—an indicator that examines market volatility by gauging the difference between high and low prices over set periods—also signals increased unrest. Its reading is 768, further underscoring the likelihood of significant price swings shortly.
Bitcoin is priced at $29,580 during this press, with a 24-hour trading volume of a whopping $14,320,473,691. Despite facing a minor dip of 0.71% in the last day, it remains the dominant force in the crypto arena with its #1 position on CoinMarketCap. However, per familiar sources, investors and enthusiasts should brace themselves, as the tides might turn swiftly in this ever-evolving crypto landscape.
