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Question #76

What does the recent Bitcoin price range around $121000 to $126000 tell beginners about market volatility?

Category: General
It shows significant price swings, indicating high volatility that beginners should expect regularly.
It indicates Bitcoin price is fixed between limits, meaning it rarely changes much.
It shows that Bitcoin price always increases steadily over time with predictable behavior.

Why is this the correct answer?

This is correct because the wide range between $121,000 and $126,000 illustrates how rapidly Bitcoin prices can move. Beginners should know that such large fluctuations are common in the crypto market, reflecting shifts in sentiment, profit-taking, and market liquidity. Understanding volatility helps new traders set realistic expectations, manage risk with tools like stop-loss orders, and avoid being surprised by sudden price changes.

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