Top Analyst Anticipates Significant Surge in Bitcoin Price Volatility
In the last 24 hours, there has been a noticeable increase of 10,000 BTC in Bitcoin’s exchange balance. This sudden shift has grabbed the attention of market enthusiasts and sparked speculation about the possibility of heightened price volatility.
Leading blockchain analytics company, Glassnode, has confirmed this development. They reported that on July 28, BTC’s exchange netflow reached a three-month peak of $9.4 million.
Anticipating Bitcoin Price Volatility
The unexpected surge in Bitcoin’s on-exchange reserves has raised concerns among investors. The primary worry is the potential for a drop in Bitcoin’s price, especially considering its recent dip to $29,000.
An increase in supply on exchanges often indicates a greater inclination among holders to sell BTC, which could impact its market valuation.
Ali Martinez, BeInCrypto’s Global Head of News, citing data from Santiment, urged investors to prepare for possible spikes in Bitcoin price volatility.
Interestingly, the growth in BTC’s presence on exchanges contradicts the recent trend of reduced exchange balances. This trend has been attributed to the increasing popularity of self-custody solutions.
Just two days prior, on July 26, Santiment recorded 1.17 million BTC on exchanges, the lowest since November 2018.
Long-Term Holders Show Resilience
Despite the recent rebound to $30,000, long-term holders have consistently been adding to their BTC positions, according to data from IntoTheBlock.
Surprisingly, this price increase has not attracted short-term holders who typically capitalize on surging asset values.
Bitcoin’s persistent accumulation by long-term holders demonstrates their faith in the cryptocurrency, but it may not necessarily result in a favorable price reaction.
Historical data from IntoTheBlock suggests that Bitcoin prices tend to rise when short-term holders are accumulating.
BTC Struggles to Maintain $30k Level
After reaching a yearly high of $31,500, BTC’s price has remained relatively stagnant.
BeInCrypto’s data reveals that BTC’s price dipped 1.8% to a weekly low of $29,045. At the time of writing, Bitcoin was trading slightly above $29,296.
In adherence to the Trust Project guidelines, BeInCrypto is committed to providing unbiased and transparent reporting. This news article aims to provide accurate and timely information. However, readers are advised to independently verify facts and consult with professionals before making any decisions based on this content.
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