The cryptocurrency market is on high alert as data from CryptoQuant signals an impending phase of increased volatility and a potential correction in Bitcoin’s value. Analysts have observed a surge in activity from Bitcoin ‘whales’—investors holding large amounts of BTC—which historically precedes market instability.
This uptick in whale transactions often leads to a short-term price decline, creating what is known as a local dip. The Exchange Whale Ratio (EWR), a metric that tracks the relative size of the top 10 Bitcoin inflows to exchanges, has spiked, indicating that whales are moving their holdings onto exchanges, possibly to sell.
Experts anticipate that this could result in Bitcoin’s price falling back to the support range of $62,000 to $63,000, a level that previously acted as a foundation for the cryptocurrency’s value. Such a drop would not be unprecedented but is expected to be part of a ‘healthy correction’ following the recent rapid price increase.
The potential sell-off by whales is seen as a necessary adjustment that could pave the way for more sustainable growth in the future. Investors and traders are advised to monitor the situation closely and prepare for possible fluctuations in the coming days.
Source: https://azcoinnews.com/cryptoquant-data-predicts-short-term-bitcoin-volatility-and-healthy-correction.html