Bitcoin’s Price Stumbles as Veteran Holders Cash In—Just When Wall Street Thought They Had the Pattern Figured Out

Long-term BTC holders are finally taking chips off the table—triggering a 5% dip as profit-taking accelerates. The move comes after a 200% rally since January, proving once again that crypto markets laugh at ’rational’ exit strategies.

These O.G. investors—many holding since sub-$20k levels—are now selling into strength while institutional traders scramble to adjust their models. Classic case of retail outsmarting the suits.

Meanwhile, crypto Twitter oscillates between ’healthy correction’ takes and apocalyptic threadstorms. The truth? Probably somewhere in the middle—like always.

Long-term Holders Are Taking Profits

CDD tells the average age of coins spent or moved in any transaction by multiplying their number by the days they were held before spending. Binary CDD shows if the movement of the coins is relative to historical spending patterns. This is to say that the metric reveals whether Supply-Adjusted CDD was above or below the wallet’s historical average on any given day.

Binary CDD gives insight into long-term holder spending behavior patterns in the crypto market. This metric is high when long-term BTC holders become active, indicating that long-dormant coins have begun to move. However, the indicator becomes low when long-term holders become inactive.

Notably, Binary CDD spikes when long-term holders start taking profits during bitcoin’s surge to new highs. In the last leg of the 2021 bull run, the 30-day moving average of Binary CDD ROSE above 0.8 as long-term investors began to actualize profits. Similarly, the metric also climbed past 0.8 when BTC jumped to new highs in March and December 2024.

Bitcoin is Cooling Off

Avocado onchain has disclosed that Binary CDD was rising again alongside bitcoin’s price recovery over the last few days. Currently, the metric hovers around 0.6, indicating that long-term holders are realizing profits. A continuous spike towards and above 0.8 is a sign that this cohort of investors is still offloading their assets, likely to short-term traders.

As predicted by experts, BTC is now cooling off after its recent rally that drove prices into overbought territory on higher time frames. CryptoPotato reported that the asset showed signs of exhaustion after climbing to a key resistance level close to $106,000.

At the time of writing, the leading crypto asset was changing hands around $102,390, having fallen almost 3% from the $105,300 range. Regardless of the brief correction, analysts say bitcoin metrics have aligned for an incoming sustained bull run.