Bitcoin Long-Term Holders Show Restraint Amid 42.81% Unrealized Losses

Bitcoin’s Coin Days Destroyed (CDD) metric has declined to 500K, down from peaks above 1 million. This suggests that long-term holders are showing restraint despite Bitcoin’s approach to all-time highs. The CDD 30-Day Moving Average confirms this cool-off, indicating a shift from aggressive profit-taking to quiet accumulation. This supports the idea that long-term holders, often referred to as "diamond hands," are still committed to their long-term strategy.

Bitcoin’s Unspent Transaction Outputs (UTXOs) in Loss have surged by 42.81% to 12.23 million, while UTXOs in Profit have slipped by 1.2% to 305.15 million. This indicates that a significant portion of recent buyers entered at higher prices and are now holding underwater positions. However, this stress appears to be localized and not market-wide, at least for now.

The BTC Taker Buy/Sell Ratio has ticked up to 1.028, a 1.04% gain that puts buy-side takers slightly ahead. This level, just above the neutral line, implies that perpetual market participants remain cautiously optimistic. However, the modest strength in buy volume does not signal a full-blown bullish breakout. This subtle buying interest hints at conviction but without the noise.

Bitcoin’s volatility remains elevated yet controlled. The latest reading of 0.011 shows sharp spikes but no follow-through. These bursts have been frequent since mid-April but haven’t flipped the overall trend. This tells us that traders are alert but not alarmed. Volatility might look wild on the chart, but it’s not tipping the market into chaos.

Bitcoin’s Network Growth has nosedived from over 500K to 76.5K, a steep drop that could signal weakening user interest. This contraction shows a significant decline in new addresses interacting with the network, indicating a slowing of organic demand. The spike in June likely resulted from temporary excitement that could not be sustained.

Putting it all together, fewer long-term sellers, rising unrealized losses, modest buy pressure, and cooling network growth paint a picture of a market in limbo. Bitcoin isn’t signaling a top, but it’s not charging ahead either. Until on-chain indicators like Network Growth or Taker activity strengthen, BTC may stay stuck in consolidation, quietly coiling for its next move.