On-chain data reveals a significant trend indicating that Bitcoin long-term holders have been actively selling their holdings, potentially contributing to the current bearish momentum in the market.
One key metric to consider is the Exchange Inflow Coin Days Destroyed (CDD), which has seen substantial spikes recently. This metric tracks the total coin days being reset through transactions into wallets connected to exchanges, providing insight into the movement of dormant coins.
The spikes in the Bitcoin Exchange Inflow CDD suggest that long-term holders (LTHs) have been transferring their holdings to exchanges, potentially in preparation for selling. This selling pressure from LTHs has been evident during recent market downturns, influencing the price movements of Bitcoin.
The latest spike in Exchange Inflow CDD coincides with Bitcoin’s attempt to initiate a recovery rally, but the resistance from LTH selling has hindered any significant upward movement in the price. As Bitcoin hovers around $57,900, up more than 4% in the past week, it will be critical to monitor the behavior of Exchange Inflow CDD in the coming days to gauge its impact on Bitcoin’s recovery trajectory.
