• Bitcoin could see a volatile phase within the $40k and $22k price range, James Check, lead on-chain analyst at Glassnode says.
• BTC’s sell-side risk ratio is approaching an all-time low, with traders on both sides showing exhaustion after recent price action.
• The flagship crypto traded at $26,400 on Wednesday, about 3% down in the past 24 hours.

On-chain metrics for Bitcoin suggests the flagship cryptocurrency could be looking at massive price moves in the short term.

After struggling to break the $27,600 resistance level following dips from above $28,000, crypto experts have opined BTC could flip to new support. On the other hand, fresh impetus could catapult the asset past its year-to-date high of $31,000.

The outlook is down to on-chain data suggesting traders on both sides are exhausted, Glassnode lead analyst James Check says.

Also going by the pseudonym “Checkmate” on Twitter, the analyst noted:

“Bitcoin Sell-side Risk ratio is approaching all-time lows. This indicates that investors are reluctant to spend coins which are in profit, or loss within the current price range. This usually occurs when sellers are exhausted on both sides, suggesting big moves are coming.”

Realized Profit and Loss metrics are literal #Bitcoin analysis super powers.

The provide X-ray vision into the sentiment, capital flows, and behaviour patterns of $BTC holders.

We have several Profit/Loss dashboards covering this topic live @glassnodehttps://t.co/oDKFmSo2io

— _Checkɱate 🔑⚡🌋☢️🛢️ (@_Checkmatey_) May 24, 2023

What next for Bitcoin price?

Realized Profit and Loss metrics provide somewhat an understanding of the Bitcoin market, according to the analyst. It is these indicators that offer BTC price outlook from the point of holders’ sentiment, capital flows and behaviour patterns.

That’s what currently suggests Bitcoin price could be setting up for a prolonged reaccumulation phase.

“Bitcoin usually has a 12ish month reaccumulation period after a bottom (if that is indeed what is in place),” Check tweeted.

According to him, Bitcoin price could see some volatile action between the $40k and $22k range. For traders looking for a definite signal, the analyst says it’s largely “directionless.” Checkmate said:

“This is somewhat directionless, it suggests volatility is coming. Note that Nov 2018 also saw a very low value. [It] indicates traders are exhausted in this price range, and doesn’t tell us which price range they want to move towards.”

Bitcoin was trading around $26,400 on Wednesday morning 9:53 am ET, and was about 3% down in the past 24 hours.