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Amid an imminent major directional shift expected to end the prolonged stagnation in the digital asset market, Bitcoin (BTC) has entered a new phase of volatility observed for the first time in about a year.
According to a February 18 report by NewsBTC, Bitcoin’s price volatility has recently accelerated sharply, marking a significant turning point in market dynamics. Digital asset trader Daan Crypto Trades noted that following a tariff-related sell-off, Bitcoin had shown unusually slow movement, but in recent weeks volatility has clearly resurfaced alongside a broader market downturn. The development is attributed to a combination of changing liquidity conditions and weakened investor sentiment.
Experts suggest that the current expansion in volatility may signal not merely a decline but an accumulation phase preceding a new bullish cycle. Analyst Aralez stated that Bitcoin has entered a bottom-forming zone and is likely to undergo a three- to five-month accumulation period before entering a full-scale price discovery phase. This outlook supports long-term optimism that if Bitcoin breaks above $126,000, it could ultimately reach $250,000.
The market’s resilience is also a key point of focus. Investor Jelle referenced the sharp drop during the FTX bankruptcy, after which Bitcoin rebounded while forming higher lows. He assessed that the current bearish trend reflects weakening bear pressure and a gradual reclaiming of control by bulls. According to his analysis, the market has already absorbed substantial negative factors, and structural changes are emerging that prevent prices from falling sharply even amid additional shocks.
Institutional activity further supports Bitcoin’s transition into a new regime. MicroStrategy (MSTR) has continued accumulating Bitcoin for 12 consecutive weeks despite the market downturn, demonstrating firm conviction. Such consistent allocations by institutions and corporations serve as a critical force underpinning the market’s fundamental strength, even as retail investor sentiment remains subdued.
Heightened volatility in Bitcoin presents short-term traders with profit opportunities while offering long-term investors a potential window for buying at lower levels. Ethereum (ETH) and major altcoins are also poised to rebound in line with Bitcoin’s momentum, raising expectations of renewed vitality across the broader digital asset market. As the fog of volatility lifts, the global financial industry is closely watching the new highs Bitcoin may ultimately reach.
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