In March 2024, Bitcoin reached a new all-time high, leading many to question whether this marked the final market top. However, based on on-chain data analysis, it appears that March’s peak was likely an "initial top" rather than the ultimate one.

Looking at Binary CDD (Coin Days Destroyed), a key indicator of long-term holder activity, we can see that long-term holders did engage in profit-taking around March 2024. However, a crucial point to note is that Binary CDD has not yet reached the red zone, a level it historically hits before the final market top is reached. This suggests that there is still room for further upside in the market.

Moreover, current data shows that long-term holder activity is not particularly strong right now, and selling pressure from long-term holders has decreased. The absence of large-scale selling by long-term holders indicates that the market has not fully matured, and we are still far from the final peak of the bull market. Thus, while March’s high may have been an "interim top" that led to a temporary period of consolidation, it is not yet the ultimate peak of the bullish cycle.

The market appears to be in a "cooling-off" phase, adjusting both price and time. Once this phase concludes, another upward movement could follow. Before we reach the final top, we will likely see renewed activity from long-term holders, with Binary CDD reaching the red zone, signaling the next round of price adjustments.

Written by sachi