Bitcoin metric signals volatile $40k-$22k move, analyst says

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  • James Check, principal on-chain analyst at Glassnode, said that bitcoin could see a volatile phase within the $40k and $22k price range.
  • BTC’s sell-side risk ratio is falling to an all-time low, with traders on both sides showing exhaustion following the recent price action.
  • The flagship crypto traded at $26,400 on Wednesday, down nearly 3% over the past 24 hours.

on-chain metrics for Bitcoin suggests that the leading cryptocurrency could see a massive price movement in the short term.

After falling above $28,000 and struggling to break the $27,600 resistance level, crypto experts believe that BTC could move to new support. On the other hand, fresh stimulus could propel the asset to its year-to-date high of $31,000.

outlook is down on-chain data James Check, principal analyst at Glassnode, suggests that traders on both sides are exhausted. They say,

The analyst also mentioned on Twitter the pseudonym “Checkmate”:

,The bitcoin sell-side risk ratio is approaching an all-time low. This indicates that investors are reluctant to spend coins that are in profit or loss within the current price range. This usually happens when sellers on both sides are getting tired, suggesting that bigger moves are coming.,

What’s next for the price of bitcoin?

According to the analyst, the actual profit and loss metrics provide some degree of understanding of the bitcoin market. These are indicators that provide BTC price outlook from the perspective of holders sentiment, capital inflows and behavioral patterns.

This is currently suggesting that the bitcoin price may be setting up for a longer recovery phase.

,Bitcoin usually has a 12ish month re-accumulation period after a bottom (if that’s what it really is),” Czech tweeted.

According to him, bitcoin price may see some volatile action between $40k and $22k range. For traders looking for a sure sign, analysts say it is largely “directionless”. checkmate said:

,It is somewhat directionless, suggesting volatility is on the way. Note that November 2018 also saw very low prices. [It] Indicates that traders have ended in this price range, and does not tell us which price range they want to move towards,

Bitcoin was trading around $26,400 at 9:53 AM ET on Wednesday, and was down nearly 3% over the past 24 hours.

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