Bitcoin Drops 30% From January Peak Amid Selloff Fears

Bitcoin is currently facing a challenging period. Earlier today, its price dropped to $74,604 before rebounding slightly to hover above $79,000. Despite this slight recovery, Bitcoin's price remains down by 3.1% over the past 24 hours and nearly 30% from its January peak of 109,000. A new analysis suggests that long-term holders may be preparing for a Bitcoin selloff, raising concerns about further market declines.

According to a report by CryptoQuant analyst IT Tech, there has been a significant spike in the Exchange Inflow Coin Days Destroyed (CDD) metric. This metric measures older Bitcoins moving after long periods of dormancy. Historically, such spikes have preceded significant price declines. This surge in the CDD metric occurred as Bitcoin was dropping from $82,000 to $76,000, indicating that long-time holders may be transferring their coins to exchanges with the intent of selling. Such behavior typically adds downward pressure on prices, especially during volatile conditions. If these long-term holders continue to liquidate their positions, it could mark a turning point for Bitcoin's price. The movement of dormant coins back into circulation has been a bearish indicator, suggesting that even seasoned investors are uncertain.

Adding to the bearish outlook, CryptoQuant analyst Bilal Huseynov noted short-term holder behavior using realized price data from UTXO age bands. Currently, the realized price for coins held between one and three months is trending downward. Similar patterns were observed during previous market peaks in 2021 and recently in March 2025. If this trend continues, new investors may face losses, which could drive the Bitcoin price lower. While Bitcoin has shown resilience in past bear markets by finding support at these levels, the combined signals from long-term and short-term data suggest caution ahead. It remains to be seen whether Bitcoin will weather this storm soon or if deeper corrections are pending.

Bitcoin commenced trading yesterday at $78,478. With oversold conditions looming, it quickly went on an uptrend, trying to test the $79,900 resistance, but the golden cross could not support it to that level. A death cross formed at 2:15 PM, leading Bitcoin into decline. By 7:05 UTC, Bitcoin had dropped to a concerning $74,567. The market was heavily oversold at this point. A trend reversal occurred soon, taking Bitcoin up to find resistance at $77,500. It faced brief resistance at this point before the golden cross at 13:50 helped it spike up to $81,216, as overbought conditions were noticed. The price correction arrived with a death cross at 15:05, as Bitcoin stabilized near $77,500. The support levels kept climbing as Bitcoin ascended. The uptrend eventually found resistance at $80,900. The overbought levels brought in some correction, but Bitcoin found stable support at $79,600.

The ‘Black Monday’ hit the crypto landscape hard, and Bitcoin bore the brunt of it as well. However, in the last 24 hours, Bitcoin has staged a valiant recovery. As of now, Bitcoin has strong support at $79,600. Given that, it has a robust chance of challenging the $80,900 resistance. But it is worth noting that as the MACDs interact, a break below the support level could spell danger for today.