Bitcoin Poised for Movement After Unusual Quiet Period

John Darbie
Photo: Finoracle.net

Bitcoin Quiet Period Suggests Big Move Ahead, Says Analyst

Bitcoin (BTC) is experiencing a rare period of ultra-low volatility, according to a well-known on-chain analyst. The cryptocurrency has only moved 8.3% up or down in the last month, which is quite unusual for BTC. This calm period could mean a major price movement is on the horizon.

Possible Outcomes for Bitcoin

The analyst, who goes by the name Checkmate, points out two potential scenarios for Bitcoin:

  1. Bitcoin remains stable, entering a new phase with little price change.
  2. Volatility returns, leading to significant price movements.

Indicators to Watch

Checkmate uses various indicators to analyze Bitcoin's market behavior. One such indicator is the short-term holder sell-side risk ratio, which helps predict if short-term holders are about to sell their coins. This could lead to a price drop. As of now, the indicator shows a low sell-side risk, meaning fewer short-term holders might sell their BTC. This is often a sign that prices could either stabilize or rise.

"The Bitcoin sell-side risk ratio is one of my favorite metrics to help navigate volatility," says Checkmate. "Lower trading levels usually mean most of the profit and loss has already been taken, and the market needs a move to motivate the next round of trading."

Short-Term Holder Metrics

Another important metric is the short-term holder spent output profit ratio (STH-SOPR). This tracks the profit or loss of Bitcoin moved by short-term holders. Recently, this metric dipped below the "1" level but rebounded quickly.

"Some of you bought Bitcoin high and are now selling low, and it shows," Checkmate states. He suggests watching the STH-SOPR metric for significant market changes:

  • Sharp drops below 1.0 followed by a recovery are positive signs.
  • Sustained drops below 1.0 are concerning.
  • Resistance at the 1.0 level implies traders should be cautious.

Current Bitcoin Price

At the time of this report, Bitcoin is trading at $66,544.

In conclusion, Bitcoin is in a rare period of low volatility, and indicators suggest it could either enter a stable phase or experience significant price changes soon. Householders and traders alike should keep an eye on the metrics shared by analysts to make informed decisions.

Source: Checkmate, On-Chain Analyst


By keeping an eye on these trends and indicators, even non-experts, like housewives, can understand the potential future moves of Bitcoin. This information, combined with expert analysis, helps everyone make better financial choices.

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John Darbie is a seasoned cryptocurrency analyst and writer with over 10 years of experience in the blockchain and digital assets industry. A graduate of MIT with a degree in Computer Science and Engineering, John specializes in blockchain technology, cryptocurrency markets, and decentralized finance (DeFi). His insights have been featured in leading publications such as CoinDesk, CryptoSlate, and Bitcoin Magazine. John’s articles are renowned for their thorough research, clear explanations, and practical insights, making them a reliable source of information for readers interested in cryptocurrency. He actively follows industry trends and developments, regularly participating in blockchain conferences and webinars. With a strong reputation for expertise, authoritativeness, and trustworthiness, John Darbie continues to provide high-quality content that helps individuals and businesses navigate the evolving world of digital assets.