The past week has been a rollercoaster for Bitcoin investors.
Prices swung dramatically, dipping from highs around $116,000 to a low of about $108,600.
While such drops often spark fears of a prolonged bearish trend, recent on-chain insights suggest that experienced investors may be stepping in to stabilize the market.
Long-Term Holders Slow Their Selling
According to Alphractal on social media platform X, there’s a noticeable shift among Bitcoin’s long-term holders (LTHs).
Using the Coin Days Destroyed (CDD) Multiple Metric—a tool that tracks how often older coins are spent compared to historical averages—the firm noted that long-term holders are selling at a slower pace than before.
In simple terms, the CDD Multiple measures when seasoned investors decide to move their coins.
Less movement indicates that these experienced participants are opting to hold onto their Bitcoin rather than offloading it in reaction to short-term price swings.
Alphractal highlighted that while LTHs have continued to trade old coins, the intensity of their selling has declined sharply compared to 2024.
This slowdown signals a reduction in selling pressure, which could provide some stability to the market.
Implications for Bitcoin’s Price
At the moment, Bitcoin is trading just above the recent swing low at around $108,500, currently hovering near $109,630.
The slower selling pace by long-term holders suggests that these investors are choosing patience over panic, waiting for clearer market trends before making moves.
Historically, when long-term holders reduce selling activity, it often precedes periods of accumulation.
This behavior provides confidence and can help prevent further price declines, laying the groundwork for potential upward momentum.
Alphractal explained that the decline in coin day destruction activity shows seasoned investors preserving their positions, which could hint at a setup for Bitcoin’s next major move.
Traders and analysts are watching both the swing low and CDD activity closely as indicators of where the market may head next.
The Takeaway
For now, Bitcoin’s market is volatile, but long-term holders appear to be stabilizing forces rather than sellers in a rush.
For investors, understanding LTH behavior through on-chain metrics like CDD Multiple can provide valuable insight into market sentiment and potential price trends.
As of this writing, Bitcoin remains largely steady, reflecting no major movement in the past 24 hours.
Watching the actions of experienced holders alongside price swings could be key for anyone considering an entry into the market.