Journalist
Posted:
- Bitcoin whales have started selling their assets.
- The price of the coin has become less volatile over the past two weeks.
Due to a significant shift in market sentiment Bitcoin [BTC] whales have started distributing coins, signaling an intention to secure profits amid the recent price consolidation.
In a recent post on
#Bitcoin whales have made profits and sold
or redistributing about 60,000 $BTC worth about $2.22 billion last week. pic.twitter.com/xmzHGXs5gu— Ali (@ali_charts) November 13, 2023
The market has become less and less volatile in recent weeks
When the market rally began in October, the significant increase in BTC’s value made its price prone to fluctuations.
In a report On October 20, pseudonymous CryptoQuant analyst Mignolet discovered that BTC recorded a notable increase in the issued output of its short-term holders (3-6 months) on October 19, as more than 125,000 dormant BTC coins changed addresses on that day.
Source: CryptoQuant
Generally, this type of sudden coin movement contributes to increased volatility in the BTC market. This led the analyst to think, “We could see significant volatility soon.”
BTC volatility indicators on the daily chart confirmed Mignolet’s position as they search for new highs for the rest of October.
However, in recent weeks these markers have shown a downward trend. It signals a decrease in price volatility as BTC stagnates below $37,000.
For example, the coin’s Average True Range (ATR) – which measures market volatility by calculating the average range between high and low prices over a set number of periods – has fallen 2% since November 1.
When this indicator experiences a decline, it indicates that the price of an asset is moving less erratically and is likely to remain within a certain range. At the time of writing, BTC’s ATR was 1042.54.
Similarly, over the past two weeks, there has been a gradual narrowing of the gap between the upper and lower bands of BTC’s Bollinger Bands indicator.
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Decreasing the distance between these two bands suggests that the price of BTC becomes less volatile. This position was further confirmed by the Bollinger Bandwidth (BBW) indicator. The indicator has fallen by 68% in the last 14 days.
At the time of writing, the coin’s BBW was 0.12. On November 1 this was 0.37.
Source: BTC/USDT on TradingView