Last week was one of the intense volatility of the encryption market because the price of bitcoin experienced a rapid nose from $ 116,000 to about $ 108,600. It was caused by this recent decline Worry about the beginning of the weak rally, according to recent chain data, the market can reach a calm state.
LTHS decline speed
In a recent post on Social Media Platform X, Alphractal revealed what is good news for Bitcoin’s strong prospects. According to a whole chain analysis company, there seems to be a change in the behavior of the long -term holder (LTH) of the Premier Cryptocurrency.
This warm chain revelation is based on multiple metrics of coin days destruction (CDD), which measures the strength of coin expenditures in relation to historical average.
As explained by the company, the metric calculates how many “coins” are destroyed when the old coin moves. In other words, the long -term holder decides to use a coin and traces the change of Bitcoin LTH activity.
Source: @Alphractal on X
As pointed out by Alphractal, members of the investor class have been moving old coins, but the sales speed has been greatly reduced. Compared to 2024, the movement of long -term Bitcoin long -term holders has slowed over the last few months. Ultimately, this dip of the CDD multiple also reduced the sales pressure of Bitcoin’s seasoned investors.
This is the meaning of the price
At the time of this article, Bitcoin is trading in the volatile market just above the $ 108,500 weekly swing. But experienced investors do not seem to rush to sell their shares. It seems that long -term holders have begun to preserve coins again without continuing to sell.
The analyst said, “The decrease in coin day destruction suggests that many experienced investors are waiting for a more powerful market by choosing to maintain their position.
Historically, this type of behavior was preceded during the accumulation period among the earlyest holders of Cryptocurrency, and the trust of these investors provides stability in the market and does not fall further.
If history is passing, the reduced CDD drain may be a signal that the foundation of Bitcoin is laid on the next larger expansion. Therefore, the last swing low surrounding movement should be monitored closely with CDD activities before making investment decisions.
At the time of writing, Bitcoin is worth about $ 109,630 and does not reflect big movements in the last 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Istock’s main image, TradingView chart
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