Last week was one of the fierce volatility for the crypto market as Bitcoin prices are in a rapid rush from $116,000 to around $108,600. This recent decline has led to Worried about the beginning of a bearish rally, recent data on the chain suggests that the market may be at a milder level.
Sales pace when LTHS decreases
In a recent post on social media platform X, Alphractal revealed what’s good news for the bullish onlookers of Bitcoin. According to on-chain analytics companies, there appears to be a change in the behavior of the best long-term holders of cryptocurrencies (LTH).
This on-chain revelation is based on multiple metrics for destroyed coin days (CDD), which measures the intensity of coin spending related to the historical average.
As the company explained, the metric calculates the number of “coin days” that are destroyed when an old coin moves. In other words, consider long-term holders decide to use the coin, thereby tracking the shift in Bitcoin LTH activity.
Source: @Alphractal on X
As Alphractal pointed out, this investor class member continues to move the old coins, but the pace of sales has dropped significantly. Compared to 2024, long-term Bitcoin holders’ movements in the market have slowed down over the past few months. Ultimately, this DIP of multiple CDDs also shows a decline in sales pressure from veteran Bitcoin investors.
What does this mean for price?
At the time of writing, Bitcoin is trading in a volatile market that has a weekly swing low of $108,500. However, experienced investors seem to be in no hurry to sell their holdings. Instead of continuing to sell, it appears that long-term holders have started to save coins again.
“This decline in Coinday’s disruption suggests that many experienced investors have chosen to hold their ground and are waiting for a stronger market move,” the analytics company said.
Historically, this type of behavior among early holders of cryptocurrency precedes the period of accumulation in which these investors’ trust provides stability in the market, preventing further declines in prices.
If history takes anything, reductions in CDD multiples could be a sign that the foundation for the next big expansion of Bitcoin is laid. Therefore, movements around the final swinglow should be closely monitored alongside CDD activity before an investment decision is made.
At the time of writing, Bitcoin is worth around $109,630, and does not reflect any significant movements over the past 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
ISTOCK featured images, TradingView chart
