Hopes of monetary easing were dashed after Federal Reserve Chair Kevin Warsh signaled a hawkish outlook in a speech at Jackson Hole on the 28th of August.
Bitcoin [BTC] fell by 3% on Friday, and Ethereum [ETH] was down by 2.74%, reflecting the risk-off attitude in the market.
Worryingly, Bitcoin Exchange Reserves climbed to 685,000 BTC, the highest in 2026. The reserves accelerated as the price rebounded from $60k to reach $80k in recent days.
Rising reserves mean more supply that is ready to be sold, and are a warning sign for swing traders and investors. The $82k supply zone has not been breached, but other factors such as Bitcoin spot ETF flows and whale activity would affect future Bitcoin price trends, too.
Beware of another expansion in volatility
CEO and Founder of crypto intelligence platform Alphractal, Joao Wedson, delivered a warning of an imminent price move. In a post on X, the analyst explained that the Bitcoin Network Stress Index had reached extremely low levels.
The metric combines hash rate volatility, fee behavior, and active supply fluctuations to map network stress. Historically, when the metric falls to extreme lows, it has tended to mark important market transition moments.
This expansion in volatility can come in either direction, the analyst warned. It is yet unclear which direction Bitcoin would go next.
Clues of a bullish impulse move
In a recent report, AMBCrypto highlighted how Bitcoin’s Supply in Profit and Loss appeared to signal a bull market was starting. Profit realization was dominant now, and financial stress built up over the summer has eased enormously after the recent BTC rally.
Popular analyst Ali Martinez observed that retail wallets were selling Bitcoin during the rally, while larger wallets continued to accumulate. Generally, larger players with more capital tend to move markets more.
Accumulation from the largest wallets was a sign of confidence in a bullish regime shift.
If the $82k supply zone is decisively breached, the chances of another upward impulse move would significantly improve.
Final Summary
- The Bitcoin Network Stress Index was reaching extreme lows, a sign of imminent volatility expansion.
- Whale accumulation signaled smart money confidence in a bullish regime shift for BTC, though rising exchange reserves were a concern.
