Cryptonews BI Nia Simpson April 8, 2025 0 Comments

Veteran Investors Potentially Spur Bitcoin Sell-Off Fears as Prices Fluctuate

Bitcoin has recently dipped to $74,604 and shows volatility as long-term investors contemplate selloffs. A significant rise in the Exchange Inflow Coin Days Destroyed metric indicates potential price declines. Additionally, short-term metrics also reflect a bearish trend. Bitcoin is currently testing support and resistance levels as traders await further developments in price behavior.

Bitcoin is currently experiencing significant volatility, with its price recently dipping to $74,604 before recovering slightly to above $79,000. Despite the short-term bounce, the cryptocurrency remains down by 3.1% over the past 24 hours and approximately 30% from its January peak of $109,000. Recent analyses indicate that long-term Bitcoin holders may be poised to liquidate their holdings, raising concerns about potential further declines in the market.

A report by CryptoQuant analyst, IT Tech, highlights a notable increase in the Exchange Inflow Coin Days Destroyed (CDD) metric, depicting a trend where older Bitcoins are being moved after extended periods of dormancy. Historically, such an increase often precedes considerable price downturns. As Bitcoin fell from $82,000 to the current levels, the continuing movement of these long-held coins suggests that veteran investors are uncertain, thereby exerting downward pressure on prices during these critical moments.

Moreover, CryptoQuant’s analyst, Bilal Huseynov, pointed out the current bearish sentiment among short-term holders, as indicated by the declining realized price for coins held between one and three months. This downward trend parallels past market peaks in 2021 and March 2025, where new investors experienced losses, potentially contributing to Bitcoin’s further price reduction. Caution is warranted as the interplay of both long-term and short-term metrics signals precarious conditions.

From a technical perspective, Bitcoin began trading yesterday at $78,478 and attempted to test the $79,900 resistance amidst oversold conditions. However, the formation of a death cross led to a decline, with prices plummeting to $74,567 before a trend reversal initiated a recovery to $77,500. Further fluctuating between $80,900 and $79,600 levels showcases the market’s volatility and the ongoing resistance points that Bitcoin must overcome to establish a more stable upward trajectory.

Looking ahead, Bitcoin has shown resilience, securing support at $79,600. Although it faces resistance at $80,900, the interaction of MACDs suggests a possible risk if prices drop below this support level. The volatility of the cryptocurrency market remains evident, prompting investors to stay alert to potential movements as the situation unfolds.

In summary, Bitcoin’s price volatility raises concerns among investors, particularly with growing selloff signals from long-term holders. The observed rise in Exchange Inflow Coin Days Destroyed indicates increased activity among veteran investors, often leading to bearish outcomes. Additionally, the downturn in short-term holder metrics compounds the caution required moving forward. As the market attempts to stabilize around key support levels, the potential for further corrections remains high.

Original Source: coinfomania.com