The past week was one of intense volatility for the crypto market, as the Bitcoin price experienced a sharp nosedive from as high as $116,000 to a swing low of about $108,600. While this recent decline has led to worries about the start of a bearish rally, recent on-chain data suggests that the market may be reaching a state of calm. LTHs’ Selling Pace On The Decline In a recent post on social media platform X, Alphractal revealed what may be good news for Bitcoin’s bullish onlookers. According to the on-chain analytics firm, there seems to be a shift in the behavior of the premier cryptocurrency’s long-term holders (LTH). This on-chain revelation is based on the Coin Days Destroyed (CDD) Multiple Metric, which measures the intensity of coin spending in relation to historical averages. As explained by the firm, the metric calculates how many “coin days” are destroyed when old coins are moved. In other words, it looks at when long-term holders decide to spend their coins, thereby tracking a shift in the Bitcoin LTH activity. As pointed out by Alphractal, members of this investor class have continued to move their old coins, but the pace of their sales has dropped significantly. Compared to 2024, the movement of Bitcoin long-term holders in the market has been slow over the past few months. Ultimately, this dip in CDD Multiple also signals reduced selling pressure from Bitcoin’s seasoned investors. What This Means For Price As of this writing, Bitcoin is trading within a volatile market just above the week’s swing low of $108,500. However, the experienced investors seem not to be in a rush to sell off their holdings. Instead of continuing to sell, the long-term holders seem to have started preserving their coins again. “This decline in coin day destruction activity suggests that many experienced investors are choosing to hold their positions, waiting for stronger market moves,” the analytics firm said. Historically, this type of behavior among the cryptocurrency’s earliest holders has preceded periods of accumulation, where the confidence of these investors offers stability in the market, preventing further decline in price. If history is anything to go by, the reduced CDD Multiple could be a sign that the groundwork for Bitcoin’s next big expansion is being laid. Moves around the last swing low should therefore be watched closely, alongside CDD activity, before investment decisions are made. At the time of writing, Bitcoin is worth about $109,630, reflecting no significant movement in the past 24 hours.
