Key Metric Indicates Potential Profit-Taking by Bitcoin Whales

Bitcoin (BTC) is currently trading at $103,485, down 0.6% in the last 24 hours and nearly 10% over the past week. It remains close to its all-time high of $109,000 from January. The market may be entering a consolidation phase supported by long-term bullish fundamentals. Increased activity among long-term holders raises questions about price sustainability.

Market Signals from Binary CDD

Analyst Avocado Onchain highlighted the Binary Coin Days Destroyed (CDD) indicator, which increases when older coins are moved after inactivity. This often indicates long-term holders re-entering the market or preparing to sell. Key points include:

Spikes in Binary CDD have historically aligned with market tops or increased distribution from early holders.
The current Binary CDD is near 0.6 and trending upward; crossing 0.8 could signal heightened distribution.
Previous rallies saw Binary CDD rise above 0.8, indicating potential selling pressure.

Profit Realization Indicators

The Binary CDD can indicate shifts in market structure. Large volumes moved by long-term holders may signify profit-taking, particularly during high prices. Contextual factors like exchange inflows should also be analyzed.

The uptick in Binary CDD suggests Bitcoin might be transitioning rather than ending an uptrend, as investors respond to price movements.

Exchange Stablecoins Ratio Concerns

Analyst EgyHash noted that the Exchange Stablecoins Ratio has risen to around 5.3, exceeding the 5.0 threshold associated with distribution phases. Historical data shows this level correlates with market pullbacks, indicating traders may prepare to sell BTC for stablecoins or fiat.