As Bitcoin Recaptures $100,000, Warning Signs Emerge From Long-Term Investors

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Before yesterday's crash, Bitcoin's recent rally was able to propel the asset to a new all-time high of $108,000, marking another important milestone in the upward trajectory.

But, according to the latest analysisthis famous price increase is accompanied by signs of potential market volatility, as long-term holders begin to exhibit selling activity.

Attention has been turned to the Binary Coin Days Destroyed (CDD) metric, an essential tool for evaluating the behavior of long-term Bitcoin holders.

What do long-time keepers celebrate now?

The Binary CDD metric tracks the activity of long-term holders by measuring the number of “dog days” destroyed relative to the total supply. When this metric rises, it often indicates increased selling pressure from long-term investors.

According to CryptoQuant analyst ShayanBTC, the Binary CDD metric has recently recorded a sharp rise, coinciding with Bitcoin's high new price.

The rate of Bitcoin Binary CDD metric is seeing an increase. | Source: CryptoQuant

Historically, such spikes in this metric have been precursors to market corrections, suggesting that these holders are taking advantage of current price levels to reduce their exposure.

Shayan said the actions of long-term holders are often a barometer of broader market sentiment. The recent rise in the Binary CDD metric suggests that those holders may look at the high above $108,000 as a strategic exit point.

If this selling pressure increases, it could lead to higher market volatility and which could trigger a price correction.

Bitcoin market overview

Bitcoin has recorded a roller coaster ride in the past day. In particular, after yesterday's FOMC news result together with the speech from Jerome Powell, the Chairman of the Federal Reserve of the United States, Bitcoin saw a significant drop in its price going down to an exchange rate of $98,000.

However, the latest price action has been very interesting as BTC is showing a rebound. In the early hours of Thursday, Bitcoin saw a subsequent surge in price recovers $100,000 to trade as high as above $105,000.

Currently, Bitcoin has returned to a price of $100,718, at the time of writing, marking a 3.5% decrease in the past day and about a 6.6% decrease away from the all-time high (ATH).

Meanwhile, adding to Shayan's statement, another CryptoQuant analyst, Onatt, marked additional emerging market indicators possible disturbance.

The Coinbase Premium Index, which tracks the price differential between Coinbase and other exchanges, is currently in negative territory, indicating increased selling pressure.