A renowned on-chain analyst, Checkmate, predicts a significant move for Bitcoin (BTC) following a rare period of low volatility.
Volatility on the Horizon
Over the past month, BTC has fluctuated by only 8.3%, a rarity for the cryptocurrency. This suggests two potential outcomes:
- Bitcoin remains stable, becoming a “stablecoin.”
- Volatility is imminent.
Sell-Side Risk Low
Checkmate’s sell-side risk ratio indicator suggests that short-term holders are not likely to sell their coins, which has historically coincided with price bottoms or rallies.
Short-Term Holder Profitability
The short-term holder spent output profit ratio (STH-SOPR) metric shows that short-term holders recently sold BTC at a loss before rebounding. Checkmate considers this bounce a positive sign for the market.
Market Character Indicators
Checkmate outlines three indicators for market character:
- Sharp drops below 1.0 and recovery: Good
- Sustained breaks below 1.0: Not Good
- Resistance at 1.0: Seatbelts On
Current Price
At the time of writing, Bitcoin is trading at $66,544.
