Trusted

Bitcoin Long-Term Holders Break Silence — Is the Market Heading for a Big Sell-Off?

2 mins
Updated by Ann Maria Shibu
Join our Trading Community on Telegram

In Brief

  • Bitcoin's long-term holders (LTHs) are moving their coins to exchanges, indicating weakening market confidence amid bearish pressure.
  • Bitcoin's Coin Days Destroyed (CDD) has surged 850% since April, suggesting an impending sell-off from older coins.
  • A negative taker buy-sell ratio and a declining Chaikin Money Flow (CMF) point to bearish sentiment, with BTC potentially dropping to $74,389.
  • promo

Over the past few days, the wave of liquidations across the cryptocurrency market has shaken investor confidence, leaving many traders on edge. With strengthening bearish pressure, many BTC holders are distributing their coins. 

Bitcoin’s long-term holders (LTHs), typically known for extended grip on their coins, have begun selling, adding further pressure to an already cautious market. What does this mean for the coin in the short term?

Old BTC Heads to Exchanges — Are Long-Term Holders Losing Confidence?

The Coin Days Destroyed (CDD) of Bitcoin being deposited onto exchanges has reached its highest point in 30 days. 

According to CryptoQuant, this currently sits at 1.79 million, soaring by over 850% since the beginning of April. This surge signals that coins held for long periods are now being transferred to exchanges, a classic precursor to potential sell-offs.

Bitcoin Exchange Inflow CDD
Bitcoin Exchange Inflow CDD. Source: CrytpoQuant

BTC’s Exchange Inflow CDD tracks the movement of older coins into exchanges. It is calculated by multiplying the amount of BTC moved by the number of days those coins have been held without being spent.

When it spikes, it means that LTHs are moving their coins to exchanges, possibly to sell. This trend is noteworthy because this group of investors has “strong hands.” They rarely sell unless there are concerning market conditions. Therefore, when they do, it suggests that their confidence is weakening and hints at a further price drop.

The sell-side momentum is also reflected in the derivatives market. BTC’s taker buy-sell ratio is currently below one, indicating that sell orders outweigh buy orders on futures and perpetual contracts. 

Bitcoin taker sell ratio

Bitcoin Taker Buy Sell Ratio. Source: CrytpoQuant

This suggests that the coin’s derivatives traders are positioning themselves for further downside, amplifying the current bearish sentiment. 

BTC Rally Faces Resistance as Buying Power Weakens

The market has attempted a modest recovery in the past few hours, with the total crypto market cap adding $48 billion over the last day. This uptick in activity has driven BTC’s price up by 4% in the past 24 hours.

However, the coin’s plummeting Chaikin Money Flow (CMF) is flashing a warning sign, forming a bearish divergence. At press time, the CMF has dropped below the zero line to -0.15 and continues to trend downward.

A bearish divergence emerges when an asset’s price rises while its CMF declines. This signals that buying pressure is weakening beneath the surface despite the price rally. If this continues, BTC could shed recent gains to trade at $74,389.

Bitcoin Price Analysis
Bitcoin Price Analysis. Source: TradingView

However, if the coin witnesses a resurgence in new demand, it could maintain its rally and climb toward $80,776.

Top crypto platforms in the US
eToro eToro Explore
Plus500 Plus500 Explore
Arkham Arkham Explore
Moonacy Moonacy Explore
Uphold Uphold Explore
Top crypto platforms in the US
eToro eToro Explore
Plus500 Plus500 Explore
Arkham Arkham Explore
Moonacy Moonacy Explore
Uphold Uphold Explore
Top crypto platforms in the US
eToro eToro
Plus500 Plus500
Arkham Arkham
Moonacy Moonacy
Uphold Uphold

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Untitled-1.png
Abiodun Oladokun
Abiodun Oladokun is a Technical and On-Chain Analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including decentralized finance (DeFi), real-world assets (RWA), artificial intelligence (AI), decentralized physical infrastructure networks (DePIN), Layer 2s, and meme coins. Previously, he conducted market analysis and technical assessments of various altcoins at AMBCrypto, utilizing on-chain analytics platforms like Messari, Santiment...
READ FULL BIO
Sponsored
Sponsored