• Long-term holders have begun to distribute their coins.
• On-chain data suggested that Bitcoin was overheated.

Bitcoin’s [BTC] Coin Days Destroyed (CDD) has hit a five-year high, according to data from CryptoQuant. Maartunn, an author of the on-chain analytic platform, also discussed this in a recent piece.

Coin Days Destroyed measures the number of days Bitcoins have been inactive multiplied by the volume transacted.

Historically, when the CDD hits a peak on the 60-day Moving Average (MA), it means that long-term holders are distributing their coins.

When this happens, Bitcoin experienced a significant correction. Maartunn, in his post also admitted it saying,

“This pattern indicates that during the bullish phase, there is a distribution of older coins. In historical contexts, it may take up to 5 months for Bitcoin to reach its peak.”

Cuts in the middle

At press time, BTC changed hands at 69,663, indicating that the coin has been moving sideways in the last 24 hours. Further insights into Bitcoin’s on-chain status showed that activity on the network had decreased.

As of this writing, the 24-hour active addresses were 706,000. A few days back, the metric was above 1 million. Therefore, the recent decrease implies that BTC’s successful transactions have declined.

If the network lacks impressive activity, then the price might be affected since demand might be low. Should this be the case, the price of Bitcoin could drop below $69,000.

Besides the active addresses, AMBCrypto also
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Author: Victor Olanrewaju

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