Bitcoin Could Soon See a Volatility Spike: Santiment, a Blockchain Analytics Firm
According to blockchain analytics firm Santiment, Bitcoin just saw a massive spike in its “token age consumed” metric. This likely means one of two things: 1) a lot of BTC just moved, or 2) a decent chunk of “old” coins, meaning coins that have not been transacted in a while, have moved.
Santiment claims that this is a sign that the BTC market will soon undergo a bout of volatility, potentially in the upward direction:
Chart of the token age consumed metric for BItcoin over the past few months with price action from Santiment, a blockchain analytics firm.
Bulls in Control
Most analysts agree that Bitcoin bulls remain in control, despite the drop last weekend. This suggests that should volatility arrive, BTC is more likely to move higher than lower.
One cryptocurrency trader noted that as long as since Bitcoin is holding above $10,500, he automatically has a bullish bias. This is in reference to the importance of that price level for BTC, which held as resistance on three separate bull rallies over the past 12 months:
Another analyst has noted that the shape of BTC’s weekly chart looks identical to the shape of BTC’s monthly chart at the 2018 lows. As reported by Bitcoinist, that analyst said:
Chart of BTC's price action over the past few months from trader b.biddles (@Thalamu_ on Twitter). Chart from TradingView.com
Should history rhyme, BTC is on the verge of a multi-week and potentially multi-month run.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com On-Chain Data: Bitcoin Will See Even More Volatility After $1,500 Plunge
Originally from Bitcoinist.com https://ift.tt/2XwR2il
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