Bitcoin Value Dips as Long-Term Holders Start Cashing In

CryptoQuant analysts suggest monitoring the actions of long-term Bitcoin (BTC) holders due to their influence on the cryptocurrency's value. A new report indicates that Binary Coin Days Destroyed (CDD) is showing signs these long-term holders are starting to cash in during Bitcoin's recent boost.

The Binary CDD metric, which reveals long-term holder spending habits, has seen a rise, suggesting that previously dormant coins are being moved. A continued spike in this metric could indicate long-term holders are offloading their assets to short-term traders. After a recent surge, Bitcoin's value is now in a cooling-off phase, with signs of exhaustion after reaching a resistance level of $106,000. At present, it trades at around $102,390, almost a 3% drop from the $105,300 range.

Despite this, analysts predict an upcoming sustained bull run due to aligned Bitcoin metrics.