Analysts at CryptoQuant believe it is important to track the activity of long-term Bitcoin holders, as it can significantly impact the price of the leading cryptocurrency.
Activity of Long-Term Bitcoin Holders
According to the report by pseudonymous analyst Avocado onchain, long-term holders of Bitcoin are beginning to take profits amid the recent price surge of the cryptocurrency.
Importance of Binary CDD Metric
The Coin Days Destroyed (CDD) metric shows the average age of coins that are spent in any transaction. The Binary CDD reveals whether long-term holders are becoming active. This metric rises when such investors start moving their assets, while a decrease indicates inactivity. Spikes in Binary CDD were noted during price surges of Bitcoin, such as in the last leg of the 2021 bull run.
Current Bitcoin Market Situation
The recent rise in Binary CDD accompanies an increase in Bitcoin prices. Currently, the metric is around 0.6, indicating that long-term holders are realizing profits. Bitcoin is showing signs of cooling off after its recent rally, with prices near the key resistance level of around $106,000.
Long-term Bitcoin holders have become active amid a recent price surge, which may signal the intentions of large capital in the market. Analysts continue to monitor this situation to predict further price changes.
