Bitcoin News Today: Bitcoin LTHs Distribute Coins as CDD Ratio Hits 0.25 Amid $120k Price Stalemate

Bitcoin’s long-term holders (LTHs) have begun distributing dormant coins as the Monthly Cumulative Days Destroyed (CDD) to Yearly CDD ratio surged to an unprecedented 0.25, a level last seen during the 2014 market peak and the 2019 correction phase [1]. This metric, tracked by CryptoQuant, indicates heightened activity from holders who have kept their Bitcoin for over a year, signaling a potential inflection point in the market. Analysts caution that while this does not confirm an immediate trend reversal, it underscores increased profit-taking by experienced investors after prolonged holding periods [1].

The on-chain activity has intensified within the $106,000 to $118,000 price range, where Bitcoin has remained trapped for over 10 days. Despite the absence of a breakout above the $120,000 resistance, technical indicators suggest the broader bullish trend remains intact. The 50-period moving average currently acts as dynamic support near $118,500, while the 100- and 200-period moving averages lag below the price, reflecting a lingering upward bias [1]. However, declining trading volume during this consolidation phase highlights indecision among buyers. A sustained move above $122,000 could reignite bullish momentum, whereas a breakdown below $115,700 might expose Bitcoin to deeper retracements toward the 100-period moving average at $109,800 [1].

Top analyst Axel Adler emphasized that the surge in CDD activity is not random but a calculated move by seasoned holders recognizing potential turning points. Historical precedents, such as the 2014 and 2019 peaks, show elevated CDD levels often coincide with distribution phases. Adler noted, however, that structural factors—such as strong Treasury demand and steady Bitcoin ETF inflows—provide a buffer against excessive downward pressure. These macroeconomic supports suggest the rally remains intact even as LTHs take partial profits [1].

The on-chain data aligns with broader technical indicators, reflecting a tug-of-war between bulls and bears. Bitcoin’s sideways movement below $120,000 resistance underscores the critical nature of the $122,000 level. A breakout could validate the bullish case, while a failure to clear it might trigger renewed selling pressure. Volume remains subdued, indicating a lack of conviction on either side [1].

Analysts from AInvest corroborated the significance of the CDD ratio’s historic levels, noting similar spikes in 2014 and 2019 preceded major corrections. The current environment, however, differs due to ongoing institutional adoption and robust ETF inflows, which counterbalance distribution pressures [2].

The market now faces a pivotal juncture. Elevated CDD activity combined with tight price consolidation suggests a period of profit-taking, but structural demand from institutional investors and macroeconomic trends continue to support the bullish trajectory. Market participants will need to monitor decisive price action above $122,000 or below $115,700 to determine Bitcoin’s next move [1].

Source:

[1] [Bitcoin LTHs Start Distributing: CDD Ratio Hits Historic Levels] [https://www.newsbtc.com/bitcoin-news/bitcoin-lths-start-distributing-cdd-ratio-hits-historic-levels/]

[2] [Bitcoin Long-Term Holders Sell as CDD Ratio Reaches 0.25] [https://www.ainvest.com/news/bitcoin-news-today-bitcoin-long-term-holders-sell-cdd-ratio-reaches-0-25-sopr-hits-record-highs-2507/]