On-Chain Data Analysis
Data shows that Bitcoin’s long-term holders have reduced their profit-taking after a recent selling spree.
Coin Days Destroyed
“Coin days” measure the time that a Bitcoin remains dormant on the blockchain. When a Bitcoin is moved, its coin days are reset to zero.
The “Coin Days Destroyed” (CDD) metric tracks the total number of coin days destroyed daily. High CDD values indicate that many aged Bitcoins are being sold.
Long-Term Holders (LTHs)
LTHs typically hold Bitcoins for extended periods. Their large coin days result in significant CDD spikes when they sell.
Profit-Taking
The analyst focused on CDD data for Bitcoins held at a profit.
Recent Trend
During Bitcoin’s recent rally, the “CDD In Profit” metric surged, indicating that even LTHs were taking profits.
However, as Bitcoin’s price has declined, the CDD In Profit has decreased, suggesting a reduction in selling pressure from LTHs.
Possible Implications
The decline in LTH profit-taking may have removed a major obstacle to Bitcoin’s rally.
Current Price Action
Bitcoin’s recovery has slowed in recent days, with the price consolidating around $64,000.
