Last week, there was a noticeable increase in demand for Bitcoin (BTC). This surge in demand resulted in a 10% price increase for BTC in the past seven days. According to Santiment data, there was a 50% increase in trading volume on October 20th. This increase allowed BTC’s price to surpass $29,000 for the first time since mid-August.
Bitcoin’s Future
A graph evaluating the activities of individuals who have recently invested in BTC (3-6 months) was published. Interesting data regarding this group of investors was revealed on October 19th. On the days when the graph was examined, over 125,000 inactive BTC wallets were moved to other addresses.
What is even more intriguing is the insight provided by data obtained from CryptoQuant. This address movement in BTC represents the largest single-day movement by investors since May. Market observers may interpret this as an attempt to profit. Investors can sell their coins during such times to benefit from the price increase of BTC.
However, this movement on October 19th may indicate other circumstances beyond the intention to sell. It could be a sign that major investors have made a change in their strategy.
CryptoQuant analyst Mignolet recently published a report emphasizing that such BTC movements in the market benefit volatility. Following the analyst’s comments, he added the following:
We may soon see a significant fluctuation.
Bitcoin Price
An examination of BTC’s daily chart supports the analyst’s view in terms of volatility indicators. The Chaikin Volatility indicator of BTC can be examined as an example.
The Chaikin indicator is used to calculate the difference between high and low prices of a crypto asset traded over a specific period of time. When the indicator is examined, it shows a 206% increase since October 15th. As of the time of writing, it had a value of 32.77.
Similarly, BTC’s Average True Range (ATR) indicated to investors that volatility had been steadily increasing throughout the past week. This indicator calculates the average range between high and low prices over a certain number of periods to measure market volatility. As of the time of writing, ATR had a value of 774.22, indicating potential significant price movements in the coming days.
Finally, Bitcoin’s Bollinger Band Width (BBW) exhibited a wide structure throughout the past week, indicating high volatility in the BTC market. As of the time of writing, Bitcoin continues to trade at $29,800.
