As Bitcoin Reclaims $100,000, Warning Signs Emerge from Long-Term Investors

Samuel Edyme

6 months ago

3 mins read

As Bitcoin Reclaims $100,000, Warning Signs Emerge from Long-Term Investors

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Before yesterday’s plunge, Bitcoin recent rally was able to propel the asset to a new all-time high of $108,000, marking another significant milestone in its upward trajectory.

However, according to latest analysis, this notable price surge is accompanied by signs of potential market volatility, as long-term holders begin to exhibit selling activity.

Attention has been turned to the Binary Coin Days Destroyed (CDD) metric, a critical tool for assessing the behavior of long-term Bitcoin holders.

What Do Long-Term Holders Currently Signal?

The Binary CDD metric tracks the activity of long-term holders by measuring the number of “coin days” destroyed relative to the total supply. When this metric spikes, it often indicates increased selling pressure from long-term investors.

According to a CryptoQuant analyst, ShayanBTC, the Binary CDD metric has recently recorded a sharp increase, coinciding with Bitcoin’s new price high.

Bitcoin Binary CDD metric sees increase. | Source: CryptoQuant

Historically, such spikes in this metric have been precursors to market corrections, suggesting that these holders are taking advantage of current price levels to reduce their exposure.

Shayan added that the long-term holders actions often serve as a barometer for broader market sentiment. The recent surge in the Binary CDD metric suggests that these holders might view the peak above $108,000 as a strategic exit point.

If this selling pressure intensifies, it could lead to heightened market volatility and potentially trigger a price correction.

Bitcoin Market Outlook

Bitcoin has recorded a rollercoaster move in the past day. Particularly, following the FOMC news outcome yesterday along with the speech from Jerome Powell, Chair of the Federal Reserve of the United States, Bitcoin saw a significant plunge in its price dropping to as low as the $98,000 level.

However, the latest price action has been quite interesting as BTC is showing a rebound. In the early hours of Thursday, Bitcoin saw a recovery in price after reclaiming the $100,000 to trade as high as above $105,000.

Currently, Bitcoin has seen a retrace back to a price of $100,718, at the time of writing, marking a 3.5% decrease in the past day and roughly 6.6% reduction away from its all-time high (ATH).

Meanwhile, adding to Shayan’s narrative, another CryptoQuant analyst, Onatt, highlighted additional market indicators that hint at potential turbulence.

The Coinbase Premium Index, which tracks the price difference between Coinbase and other exchanges, is currently in negative territory, indicating increased selling pressure.

Furthermore, the adjusted Spent Output Profit Ratio (aSOPR), a metric used to gauge profit-taking behavior, has shown sudden spikes.

According to Onatt, these signals collectively highlights the need for sustained institutional demand, particularly through Bitcoin exchange-traded funds (ETFs), to stabilize market conditions.

Bitcoin (BTC) price chart on TradingView — BTC price is moving upwards on the 2-hour chart. Source: BTC/USDT on TradingView.com

Featured image created with DALL-E, Chart from TradingView

Samuel Edyme

Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.

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