Analyzing current metrics: VDD signals whale activity
The cryptocurrency market is once again under close scrutiny: old whales have begun actively transferring their BTC to exchanges. This trend, reflected in the VDD metric (Volume of Dormant Bitcoins Distributed), indicates an increased risk of a local correction for Bitcoin.
Over the past two days, metrics have shown alarming signals: an impulsive price drop of 8-13% seems almost inevitable. But what does this mean for traders and investors?
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Why is VDD so important?
The VDD metric tracks the movement of long-term wallets. When large holders begin to activate, it may indicate preparation for sales.
If BTC is being sent to exchanges in large volumes, it often leads to increased pressure on the price, provoking a correction.
The current activity of old whales coincides with a typical scenario of preparation for significant market movements.
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Strategy: do not rush to buy altcoins
For those actively trading altcoins, the current situation requires caution. As experience shows, during a BTC correction, most altcoins also lose value, sometimes significantly more.
It is important to pay attention to:
Where liquidity will start to flow: watch for increasing trading volumes in specific assets.
Stablecoin market: increased inflow of USDT or other stablecoins to exchanges may indicate the readiness of large capital to enter positions.
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How to profit from a correction?
For traders, the current situation opens up several opportunities:
1. Selling at local peaks. If BTC repeats the scenario of previous corrections, active traders can profit from short positions.
2. Monitoring the behavior of ETH and other top assets: their decline may herald the final phase of correction.
3. Buying during panic: sharp sell-offs provide a chance to acquire assets at a discount.
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Conclusion: time to be alert
The Bitcoin market is on the brink of significant changes. Whale activity, captured by the VDD metric, is a signal that cannot be ignored. A local correction may present an opportunity for experienced traders, but inexperienced investors risk incurring losses if they act hastily.
Recommendation: monitor the market, analyze metrics, and watch the liquidity of major players. Data-driven decisions will help you not only preserve capital but also increase it.
