Long-term holders represent a critical segment of market participants, and monitoring their behavior can provide valuable insights into future market trends. The Binary Coin Days Destroyed metric is a key tool for analyzing their activity. This metric assigns a value of 1 when the Supply-Adjusted Coin Days Destroyed (CDD) exceeds its average and 0 otherwise.
The accompanying chart illustrates the 30-day SMA of the Binary CDD metric alongside Bitcoin’s price. Spikes in this metric often signal potential selling pressure from long-term holders, as historically, such surges have been followed by significant price declines.
Currently, the Binary CDD metric has seen a substantial spike, coinciding with Bitcoin's recent achievement of a new all-time high at $108K. This surge suggests that long-term holders may view this price level as an opportune moment to distribute their assets, thereby reducing their market exposure. If this selling pressure intensifies, it could contribute to further volatility and a potential price correction.
Written by ShayanBTC
