Recent changes in the activity of Bitcoin long-term holders showcase interesting trends in investor behavior and public opinion about the cryptocurrency.
Return of Coin Days Destroyed to Baseline
Bitcoin's Coin Days Destroyed (CDD) has returned to baseline after a year of heightened activity. This event coincides with the market entering a phase of sideways trading, with Bitcoin's price hovering just below the critical $96,000 resistance zone.
Signals from Bitcoin Whales
Large Bitcoin holders appear to be slowing their distribution pace, with the 7-day Netflow plunging by 619.31%. This sharp decrease in outflows could signal a shift in whale behavior from selling to holding or accumulating Bitcoin. Bitcoin’s MVRV Ratio, a measure of profitability, has rebounded to 126.73% after reaching lows near 83% in early April. This recovery suggests most holders are back in profit territory, which could lead to increased sell-side pressure.
Social Sentiment and Technical Outlook on Bitcoin
Social sentiment towards Bitcoin has seen an uptick, with Social Dominance reaching 25.04% and Social Volume at 3,274. This renewed interest from retail investors often correlates with rising volatility, potentially acting as a secondary catalyst for momentum. From a technical perspective, Bitcoin is hovering near the $96,000 resistance level. A decisive close above this level could trigger a rally towards $100,000. However, rejection at this level might extend the consolidation phase.
The long-term holder activity of Bitcoin is stabilizing, and whale outflows are decreasing. With growing social interest and prices consolidating below resistance, Bitcoin appears poised for a breakout. However, for this rally to materialize, bulls must reclaim and maintain levels above $96,000 to confirm the upward momentum.
