Bitcoin reached a peak in March 2024, setting a new all-time high, igniting discussions among investors regarding whether this marked the climax of the bullish market. Some assert that this could signify the ultimate peak, whereas on-chain data presents a contradictory view.
Various metrics, such as Coin Days Destroyed (CDD), suggest that there might still be room for further growth in the market.
Possible Continuation of Bitcoin’s Ascend?
The noteworthy increase in the Coin Days Destroyed (CDD) metric for Bitcoin in March 2024 indicated that certain long-term holders cashed out around the all-time high. Nevertheless, a deeper analysis indicates that the CDD has not yet reached the critical “red zone” typically associated with the market’s final peak.
Although the peak in March marked a substantial interim high, it is improbable to have been the apex of the current cycle. The trend observed in the CDD metric suggests that potential price surges are still feasible in the near future.
CDD serves as a crucial on-chain indicator monitoring the movement of older, long-held Bitcoin, providing insights into the selling behavior of long-term holders, thereby offering a clearer perspective on the market’s maturity and potential upcoming trends.
The lack of a peak in the CDD suggests that the bull market could still have room for expansion, especially as long-term holders exhibit caution rather than complete divestment.
Continued Accumulation of Bitcoin by Long-Term Holders
An examination of the supply data for Bitcoin Long-Term Holders (LTH) from Glassnode echoes the optimistic sentiment mirrored in the Coin Days Destroyed (CDD) metric.
The data indicates that long-term holders began boosting their accumulation in July, when Bitcoin’s price initiated a decline.
Between July 19 and September 6, the stock of Bitcoin held by long-term holders notably increased, climbing from approximately 13.5 million BTC to over 14.1 million BTC. This accumulation trend reflects the sustained confidence among long-term holders in Bitcoin’s future, despite recent price shifts, underlining their reluctance to exit their positions.
The escalating supply underscores the commitment of long-term holders to exploit the lower prices, reinforcing the belief that further upward potential exists in the market, especially as these key investors persist in holding and accumulating rather than selling.
Bitcoin’s Descent in the Rankings Persists
Bitcoin’s ongoing pricing struggles are evident in CryptoCrypto’s recent analysis of its daily chart, revealing a decline of more than 3% in the latest trading session, driving the price down to approximately $56,000. Subsequently, there was an additional 0.7% decrease as the value approached $55,700.
The Relative Strength Index (RSI) for Bitcoin dipped slightly below 40, hinting at entry into the oversold territory. This scenario indicates that the selling pressure might have reached its peak, potentially setting the stage for a forthcoming rebound in prices.
Despite the continuous price fall, the positive trajectory in Bitcoin’s Long-Term Holder (LTH) supply could encourage further accumulation at the current price level.
If long-term holders persist in bolstering their positions, it might offer substantial price support, potentially leading to stabilization or even a recovery as the market adjusts to the downward trend.