Recent data indicates that long-term holders of Bitcoin (BTC) have completed the largest distribution (selling) process in recent years, indicating a shift in the behavior of old investors. This shift reflects a decrease in selling activity and an increase in holding and accumulation periods, which could have a significant impact on the market in the coming period.
🔎 Understanding what happened: from selling to accumulation
The price movement of Bitcoin largely depends on the behavior of long-term holders. When this group of investors starts selling large quantities, the market often experiences strong selling pressure that leads to volatility or price declines. Conversely, when they stop selling and start holding or accumulating, it leads to market stability and may be an early indicator of a new bullish cycle.
The attached chart shows that the Coin Days Destroyed (CDD) index—a measure of the movement of coins that have been inactive for long periods—has sharply declined, indicating that old coins are no longer being moved as frequently as before, which suggests a decrease in selling pressure.
📊 How does this affect the market?
🔹 Reduced supply for sale: When long-term holders keep their coins instead of selling them, there are fewer Bitcoins available in the market, which could lead to price increases as demand rises.
🔹 Market stability: Typically, these periods of reduced supply precede price stabilization phases, where violent fluctuations cease in preparation for a new market cycle.
🔹 A positive signal for investors: Historically, markets have experienced significant rises after reductions in selling by old holders, which drives many investors to be optimistic about the upcoming period.
🚀 Are we on the verge of a new bullish wave?
Throughout previous cycles, the behavior of long-term holders has been a key indicator of the next market movement. As current activity shifts from selling to accumulation, the market may be preparing for a new rise. However, other factors such as liquidity, the global economy, and institutional adoption remain influential in determining the upcoming trend.
Do you think Bitcoin is ready to break through new price levels? Or do we still need more time to stabilize? Share your thoughts! 👇
