Bitcoin traders are bracing for turbulence today as the on-chain analytics platform CryptoQuant has revealed interesting news. The platform announced that a massive 170,000 BTC, owned by short-term holders, has started circulating in the market. This means that there could be heightened market volatility in the coming days. This surge in Bitcoin trader activity could potentially cause chaos, perhaps leading Bitcoin to break the $85K resistance and approach the coveted $100K milestone.
Short-Term Holders Trigger Bitcoin Volatility Alarm
CryptoQuant’s contributor Mignolet explained, “Around 170,000 BTC are moving from the 3–6 month holder cohort,” adding, “Large movements from this group often signal that significant volatility is imminent.” Historical data support this claim, showing that similar spikes in short-term holder (STH) activity have preceded major upward and downward price swings since late 2021. The current volume of BTC movement is the largest seen from this group in years, intensifying expectations for a market shake-up.
Speculators Drive Selling Pressure, But Long-Term Holders Stay Firm
STHs, known for their sensitivity to market shifts and narratives, have recently been identified as the main source of Bitcoin selling pressure. CryptoQuant contributor Crazzyblockk noted, “Short-term holders (STH) have been the primary sellers, sending an average of 930 BTC/day to exchanges,” compared to long-term holders (LTH), who moved only about 529 BTC/day. This disparity highlights short-term fear or profit-taking, while long-term HODLing remains strong.
Crazzyblockk described the current market action as a “classic shakeout,” emphasizing that the correction is driven by nervous short-term and mid-tier holders rather than a mass exit by savvy investors. With Bitcoin trading sideways and volatility compressed, this cohort-driven activity suggests a temporary reaction rather than a fundamental sell-off.
As CryptoQuant concludes, “Bitcoin volatility is coming,” signaling traders and investors to prepare for potential price swings shortly. While the direction remains uncertain, the surge in BTC movement among speculators marks a critical juncture for Bitcoin’s price trajectory.
Bitcoin Price Analysis: BTC Continues to Vie with $85,000
Bitcoin started yesterday at $84,000. In its initial movements, Bitcoin found its bottom to the previous day’s downtrend near $83,935. With an early golden cross on the MACD, Bitcoin started ascending, but could not make meaningful progress. The bears took control and pulled Bitcoin back to $83,800. At 4:20 UTC, the EMAs formed a golden cross, and Bitcoin climbed to $84,960, facing a reversal right after. A downtrend followed, taking Bitcoin to $84,220. It attempted to rise again, but soon fell to the support again. With the RSI noting oversold conditions, a wide golden cross formed on the MACD, and an extended uptrend followed.
The uptrend took Bitcoin to $85,446 by 18:30 UTC. The conditions were overbought at this time, and the correction arrived. However, Bitcoin was able to find support at $84,500. With a strong support established, Bitcoin went on to test the $85,150 resistance multiple times. However, these attempts have been unsuccessful so far. As of the last update on April 18, Bitcoin was on a slow downtrend after testing the resistance level.
Bitcoin Price Prediction: Can Bitcoin Rocket Past $85K?
Since the crash last week, Bitcoin has made a considerable recovery. While there is still potential for more gains, the debacle with the $85K mark has shaken Bitcoin traders’ confidence. The bullish trends are facing strict reversal at this point, making it a key psychological resistance for traders. Given that, for Bitcoin price to muster a significant ‘up’, the bulls must provide a relentless buying force. Bitcoin looks poised to relinquish the current support before showing some real gains.
Source: Coinfomania / Digpu NewsTex