BTC Price Poised for a Major Move: CryptoQuant Warns of Impending Shakeout!
BTC/USD is ready for volatility, according to new research released on February 17 by the on-chain analytics platform CryptoQuant. Bitcoin price action has rarely been so rangebound, and while volumes are declining, market participants are preparing for a shakeout. According to Percival, a contributor to CryptoQuant, the atmosphere is reminiscent of August 2023, when the return of volatility brought about a sudden drop before BTC/USD began a multi-month uptrend.
Our Choppiness Index on both the daily and weekly charts is quite unstable (62 and 72 respectively), meaning it urgently needs to enter a trend, suggesting a more aggressive movement to either side of the box. Evidence of this pressure is the 90-day range that Bitcoin has found, with fluctuations ranging around 16% from the maximum to the minimum of the lateral range.
Percival
BTC Traders Beware: Bitcoin Could Clear Out Positions Before Surging!
Percival added that in 2023, before the uptrend, price cleared all traders of ‘boring’ positions in the opposite direction due to low volatility—further strengthening the case for a major liquidity grab to come. The Choppiness Index has seen multiple local peaks over the past six months as Bitcoin intersperses periods of rapid gains with grinding consolidations. In December, Percival used its readings to correctly forecast a cooling-off period for BTC/USD once it hit the area around $110,000.
Percival identified the short-term holder (STH) cost base at $92,000 as a level of interest, taking into account possible price floors should the 2023 scenario take effect. The 200-day EMA, which is presently trading at $85,000 according to data from Cointelegraph Markets Pro and TradingView, seems appealing in the event that this fails.
The possibility of false moves before the bull run is strong, many breakout traders are positioned in these zones, and the sovereign market tends to blow up these positions and return to the expected course!
Percival
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