- The BTC CDD suggested that the trend was still below critical levels
- Long-term holders have accumulated approximately 1 million BTC since July
In March 2024, Bitcoin hit a new all-time high. It has since sparked debate among investors about whether this was the peak of the bull market or not. While some argue that this could be the ultimate summit, data on the chain suggests otherwise.
In fact, statistics like Coin Days Destroyed (CDD) seemed to indicate that the market may still have room for further upside.
Bitcoin’s top already in?
In March 2024, Bitcoin saw a notable spike in the Coin Days Destroyed (CDD) metric, indicating that some long-term holders were taking profits near all-time highs. However, further analysis revealed that the CDD has not yet reached the critical ‘red zone’. This zone usually signals the eventual market top.
What this means is that while the March peak represented a significant interim peak, it was likely not the ultimate peak of the current cycle. In line with this, the trend in the CDD metric indicated that there is still potential for further price increases in the coming months.
Source: CryptoQuant
CDD is an important on-chain metric that tracks the movement of older, long-held Bitcoin. It provides insight into when long-term holders are selling, providing a clearer picture of market maturity and possible future trends.
The fact that the CDD has yet to peak implies that the bull market may still have room to grow. Mainly because long-term investors are cautious, but not getting out completely.
Long-term holders continue to accumulate Bitcoin
An analysis of Bitcoin Long-Term Holders (LTH) provides data Glass junction also revealed positive sentiment in line with the trend observed in the Coin Days Destroyed (CDD) metric.
According to the same story, these long-term holders started increasing their accumulation in July, when the price of Bitcoin started to fall.
Source: Glassnode
Between July 19 and September 6, the supply of Bitcoin in the hands of long-term holders grew significantly, from approximately 13.5 million BTC to more than 14.1 million BTC. This accumulation trend suggests that long-term holders remain confident in Bitcoin’s long-term prospects despite the recent price decline and are not exiting their positions.
This growing supply is a sign that long-term holders are taking advantage of lower prices, reinforcing the belief that the market still has room for further upside. Especially as these key investors continue to hold and accumulate, rather than sell.
BTC continues to decline in the charts
Bitcoin’s price struggle continues, with AMBCrypto’s analysis of the daily chart showing a decline of more than 3% in the last trading session. The decline dropped the price to about $56,000. At the time of writing, the decline appeared to continue with an additional 0.7% drop, bringing the price to around $55,700.
Source: TradingView
The Relative Strength Index (RSI) for Bitcoin had fallen slightly below 40, indicating that it has entered the oversold zone. Simply put, selling pressure may have peaked, which could signal a potential price rebound in the near term.
– Read Bitcoin (BTC) price prediction 2024-25
Despite the continued price decline, the positive trend in Bitcoin’s Long-Term Holder (LTH) supply could promote further accumulation at this price level.
As long-term holders continue to build their positions, this could support the price. This could potentially lead to stabilization or even recovery as the market processes the downward trend.