Bitcoin (BTC) is on the verge of a significant shift as it navigates through an exceptionally low period of volatility, as noted by a renowned on-chain analyst.

Checkmate, an analyst with a large following on the social media platform X, highlights that BTC has experienced a mere 8.3% fluctuation in the past month, a rare occurrence for the leading cryptocurrency.

This situation presents two potential outcomes, according to the analyst’s analysis.

“Bitcoin seldom experiences such calmness. The 30-day price range has only varied by 8.3%. There are two possibilities: 1) Bitcoin remains stable, ushering in a new era, or 2) Volatility is on the horizon.”

Additionally, Checkmate shares a chart featuring the short-term holder sell-side risk ratio indicator, which helps anticipate whether short-term holders are gearing up to sell their coins, potentially leading to a market correction.

According to the analyst, the current status of the indicator suggests low sell-side risk, a trend that has historically coincided with price bottoms or uptrends.

“The Bitcoin sell-side risk ratio is a key metric for navigating market volatility. When it decreases (as it has today), it indicates that all the potential profit and loss has been realized. The market needs a catalyst to drive the next phase of spending.”

Checkmate also brings attention to Bitcoin’s short-term holder spent output profit ratio (STH-SOPR) metric, which monitors the profit or loss levels of BTC moved by short-term holders within a specific timeframe.

The analyst notes that the STH-SOPR recently dropped below the “1” level briefly before rebounding, a positive sign for the BTC market.

“If you purchased Bitcoin at a high price and are now selling at a loss, it reflects in the data. Keep an eye on STH-SOPR for shifts in market dynamics: – A quick drop below 1.0 followed by a recovery is positive – Prolonged dips below 1.0 are concerning – Resistance at 1.0 indicates caution.”

As of the time of writing, Bitcoin is trading at $66,544.

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