Imminent Bitcoin Price Volatility Predicted as 170,000 BTC Moves

Bitcoin market volatility is anticipated as 170,000 BTC moves from short-term holders, potentially signalling market shifts. Short-term holders are identified as primary contributors to current selling pressure, contrasting with more stable long-term holders. The distinction implies that the market shakeout is primarily driven by nervous short-term investors rather than a mass exodus of seasoned traders.

Bitcoin is expected to experience significant price volatility as a large quantity of coins moves onchain, according to analysis by CryptoQuant. On April 18, the platform warned that a shake-up in the Bitcoin market is imminent as 170,000 BTC owned by short-term holders (STHs), purchased between three and six months ago, begins circulating. CryptoQuant contributor Mignolet observed this trend, noting that previous large movements from this group have often indicated upcoming volatility in prices.

A chart accompanying the report illustrates historical impacts of similar STH movements, highlighting that this recent quantity is the largest since late 2021. Price direction following these movements has varied, showcasing both upward and downward trends. Mignolet underscored that the current calmness in Bitcoin prices may soon change as volatility approaches.

STH entities have been linked to increased selling pressure in the Bitcoin market. Recent downturns have prompted panic selling among STHs, defined as entities holding BTC for six months or less. Reports indicate these short-term holders are the main contributors to current selling trends, sending an average of approximately 930 BTC per day to exchanges, compared to about 529 BTC per day from long-term holders (LTHs).

This situation reflects a classic market shakeout, according to CryptoQuant analyst Crazzyblockk. While short-term holders exhibit fear and engage in profit-taking, long-term holders seem to maintain their positions. This suggests that the current correction is not indicative of a widespread exit by seasoned investors, but rather a reaction among short-term and mid-tier holders in response to market conditions at the moment.