Bitcoins Breakout Spurs Renewed Market Activity Amid Rising Volatility
The sudden break from trading range consolidation for Bitcoin has reawakened the market creating new waves of volatility across the board for cryptocurrencies. Insights from the worlds premier analytical platform CryptoQuant show that this movement has woken up previously idle networks and pointed to new trends that have to be observed.
According to a recent report, last week Bitcoin rose from its recent consolidation by recording an increase in its price. This price movement could be considered a notable deviation from the digital currencys mostly sideways trading in the past several months. The breakout has also led to an expansion of the Bitcoin value and the implementation of an element of high volatility, which is synonymous with other cryptocurrencies during a breakout.
Bitcoin Short-Term Holder Surge
During this surge, one of the activities noted as being on the rise is that of the short-term holder. From CryptoQuant, the above holders spent 33,155 bitcoins in one week to one month spend output age bands. This activity level is important because the near term always has the capability of displaying selling pressures which have the ability to determine the next move of the BTC prices.
The short-term holders usually sell such a large volume of Bitcoin within a short time due to bearish sentiments or profit-taking after a sharp rise in the price of BTC. This selling pressure can slow the upward momentum as evident from current prices as demonstrated in the following chart. The slowdown earlier this year might be an indication that Bitcoin might be due for a normal correction; where prices dip to certain levels in search of new supports and resistances.
According to the analysis, market participants should be careful during this period. Should the movements within these age bands gain momentum the market may experience more significant swings. Higher activity in these segments is normally associated with intensified market fluctuation which makes it a significant factor to consider for any trader or investor.
Although the current Bitcoin has spurred some hope among investors, analyzing the data presents a relatively convoluted market picture that must be addressed. However, the possibility of retracement together with the high selling pressures from the short-term holder class points to future instability of BTCs short-term outlook than the initial rally indicates.
Read more: https://www.tronweekly.com/bitcoins-breakout-spurs-renewed-market-activity/
Text source: TronWeekly
