CryptoQuant: Bitcoin price is about to fluctuate as speculators move 170K BTC

Bitcoin speculators can cause "significant" price volatility when a large amount of coin is moved on-chain.

In a "Quicktake" post on April 18, the on-chain analysis platform CryptoQuant warned that the Bitcoin market is about to experience significant volatility.

CryptoQuant: "Volatility is coming" with Bitcoin price

Short-term Bitcoin holders (STH) are indicating that the current price stability of BTC may not last.

CryptoQuant reveals that approximately 170,000 BTC from entities that purchased 3-6 months ago have started to circulate again.

"About 170,000 BTC is being moved from the holders group in 3–6 months. Large movements from this group often signal a strong volatility is about to occur," collaborator Mignolet confirmed.

BTC movement from the 3–6 month holder group | Source: CryptoQuantThe accompanying chart shows the impact of past events related to this STH group. Among them, the most recent event had the largest volume since the end of 2021 and the price direction experienced fluctuations — both upward and downward market reactions.

"Volatility is coming," Mignolet concluded.

Bitcoin speculation causes selling pressure

As reported, STH entities are known to be sensitive to sudden fluctuations in the market and the word of mouth.

Recently, when the price of BTC dropped, this group has experienced several panic sell-offs. STH is defined as entities that have purchased Bitcoin within the last 6 months.

Earlier this week, CryptoQuant listed STH as one of the main selling pressure sources in the current Bitcoin market.

"STH is the main selling force, averaging about ~930 BTC/day to exchanges. Meanwhile, long-term holders (LTH) only move around ~529 BTC/day — indicating fear or short-term profit-taking, while long-term confidence is maintained," Crazzyblockk wrote in another Quicktake post.

! Bitcoin Bitcoin Investor Cash Flow Comparison | Source: CryptoQuantCrazzyblockk described the "typical purge" taking place for Bitcoin, while reassuring concerns about all investors fleeing the market in unison.

"With Bitcoin trading sideways and volatility compressed, the decline caused by this group helps us understand that the current correction is not a mass exodus of smart money but is likely just a reaction from short-term holders and average investors who are worried," the post stated.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct thorough research before making any decisions. We are not responsible for your investment decisions.

Minh Anh