The Reserve Risk and MVOCDD indicators show drastic changes in the behavior of long-term Bitcoin holders. These signals may indicate a potential price peak for the cryptocurrency.
Long-Term Holder Sell-Off and Reserve Risk Signal
The Reserve Risk indicator is flashing a renewed warning, suggesting a possible local top as long-term holder activity increases. Long-term holders have begun to actively sell their accumulated coins, which may suggest overvaluation in the market.
MVOCDD Activation
A recent post by Darkfost_Coc notes that the MVOCDD indicator has activated for the third time. This event occurred amid a notable release of older Bitcoins that were sold within a short period of time. MVOCDD tracks the velocity of spent coins and indicates that holders with older coins have opted to sell, a pattern previously seen near local peaks.
Long-Term Holder Behavior and Short-Term Uncertainty Risk
The sharp movement of dormant Bitcoins underscores that long-term holders are adjusting their strategy. This behavior has previously foretold temporary cooling phases in the market. As noted by Darkfost_Coc, the indicator has accurately marked short-term market turning points; however, this does not suggest a significant trend reversal but rather an increased likelihood of price stabilization or short-term retracement.
Thus, the current behavior of the Reserve Risk and MVOCDD indicators signals a shift in sentiment among long-term Bitcoin market participants. This may indicate short-term price corrections or market stabilization.
