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Bitcoin’s price is showing heightened volatility, with its recent fluctuations drawing comparisons to August 2023. On February 17, research from on-chain analytics platform CryptoQuant highlighted that Bitcoin’s price action has become increasingly rangebound, signaling a potential shift in market behavior.
The Choppiness Index, a key measure of market volatility, has surged to 62 on the daily chart and 72 on the weekly chart, suggesting that Bitcoin is on the verge of a significant price movement. According to CryptoQuant contributor Percival, similar conditions were observed in August 2023, right before Bitcoin experienced a sharp dip, followed by a sustained uptrend.
Bitcoin’s Current Market Condition
📉 Price Range: Bitcoin has been stuck in a 16% range over the last 90 days, with no clear trend.
⚠️ Volatility Alert: The high Choppiness Index indicates instability and signals that Bitcoin needs to break out of its stagnation soon.
🔄 Liquidity Grab Likely? Percival suggests that this phase could lead to a liquidity sweep, where traders on the wrong side of the market get wiped out before a major price shift occurs.
Key Price Levels to Watch
🔹 $92,000 (Short-Term Holder Cost Basis): A critical support level—failure to hold this could trigger further declines.
🔹 $85,000 (200-Day EMA): If Bitcoin drops further, this could act as a major support zone to watch.
What’s Next for Bitcoin?
While Bitcoin faces short-term uncertainty, its long-term outlook remains positive, driven by increasing institutional adoption and mainstream interest in cryptocurrencies. However, significant volatility remains a defining feature of Bitcoin’s price action.
As analysts anticipate a major move, investors are advised to:
✔️ Keep an eye on key support levels.
✔️ Stay updated with market trends and volatility indicators.
✔️ Be prepared for potential breakouts or downturns.
With Bitcoin in a highly volatile phase, the coming weeks could determine whether it soars to new highs or dips further. Stay alert, trade wisely, and brace for impact!
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