AxelAdlerJr2023-06-18

The Secret Signal of Bitcoin's Rise: Why are LTH Holding Their Assets?

The last six months have marked a significant shift in the Bitcoin market. Since the start of the year, Long-Term Holders (LTH), or those who retain their assets for extended periods, have significantly reduced their selling activity. This phenomenon is typical for the early stages of a bull market, when prices are rising, and many Bitcoin holders prefer to hold on to their assets. Understanding BTC: Binary CDD Binary CDD, or Coin Days Destroyed, is a metric that reflects the degree of Bitcoin selling activity by the LTH cohort. When the metric turns red, it means that LTH is actively selling Bitcoins. Maximum sales peaks usually coincide with the end of bull cycles and are marked by red "spikes" on the Binary CDD chart. What does this mean for the market? This change in LTH behavior may signal the beginning of a new bull cycle. A decrease in selling activity by LTH typically indicates growing confidence in the future of the market and maybe a harbinger of further price increases in Bitcoin.