Binary CDD has recently turned down after a brief rise, while Bitcoin’s price remains in a sideways range. Historically, the movement of long-dormant coins often signaled an intention to sell, and a rise in Binary CDD was considered a sign of market overheating. However, in today’s market environment, factors such as changes in custody practices, increased OTC activity, and institutional asset management strategies make it harder to interpret CDD spikes as purely overheating signals.
Recent data shows that after Binary CDD rises, Bitcoin has often moved sideways or experienced a correction for several months. The current trend appears to be a “stair-step” rally — a gradual upward movement that cools off short-term heat while sustaining long-term momentum. This pattern can be healthy for the market, preventing rapid exhaustion of buying power.
In the near term, this sideways-to-gradual-uptrend structure may persist, and traders should closely monitor both Binary CDD fluctuations and price action to gauge trend shifts. Importantly, other on-chain indicators show that long-term holder selling pressure remains limited, supporting the view that Bitcoin retains strong upside potential over the long run.
Written by Avocado_onchain
