Bitcoin Recovery Stalls As HODLers Apply Selling Pressure

Bitcoin’s recovery appears to be stalling as long-term holders (LTHs) have been selling their holdings, putting selling pressure on the cryptocurrency. On-chain data reveals that a significant number of old Bitcoin tokens have been deposited in centralized exchanges recently. This is indicated by the “Exchange Inflow Coin Days Destroyed (CDD)” metric, which measures the number of coin days being reset through transactions into exchange wallets. The spikes in Exchange Inflow CDD suggest that LTHs have been transferring their holdings to exchanges. Typically, spikes in CDD correlate with movements from LTHs, indicating that they have been selling their coins. This selling pressure from LTHs may have played a role in Bitcoin’s recent market crash. Despite Bitcoin’s attempt to start a recovery rally, the latest spike in Exchange Inflow CDD suggests that the selling from LTHs has been hindering the coin’s progress. The behavior of Exchange Inflow CDD in the coming days will be crucial in determining whether this selling pressure continues to impede Bitcoin’s path to recovery. As of now, Bitcoin is trading at around $57,900, with a weekly gain of more than 4%.