Bitcoin's Underlying Strength Emerges as Long-Term Holders Redistribute Bitcoin finds itself navigating a tight trading range, caught between crucial resistance and support levels. However, a closer look at on-chain metrics, particularly the Coin Days Destroyed (CDD) indicator, reveals a significant shift: long-term holders are easing their selling pressure, a development that could signal renewed bullish momentum for the cryptocurrency.
Long-Term Holder Distribution Softens
Recent analysis highlights the strongest movement of older Bitcoin (held by Long-Term Holders, or LTHs) seen in the current cycle. Despite this substantial distribution activity, Bitcoin's price has shown remarkable resilience, correcting only a modest 10-13% from its recent highs. Historically, such significant LTH selling would typically trigger much deeper drawdowns. The fact that the market has largely absorbed this supply without a major crash suggests robust underlying demand and a maturing market structure capable of withstanding significant sell-side pressure. The 30-day average CDD metric, while still elevated, has begun to cool off, indicating that the most intense phase of LTH distribution may be subsiding, offering the market crucial breathing room.
Navigating Key Price Levels Amidst Resilient Demand
Currently trading around the $112,870 mark, Bitcoin is staging a modest recovery from its recent pullback. The price is hovering above its 100-day moving average, a key mid-term trend indicator, which is acting as a strong support zone. Immediate resistance is observed between $113,000 and $113,500, with a decisive break above this level potentially paving the way for a retest of the critical $120,000-$123,000 resistance zone. On the downside, strong support lies between $110,000 and $108,000. Should this level fail, a deeper retracement towards the 200-day moving average near $82,000 could occur, though this would require overwhelming selling pressure not yet evident. The continued absorption of LTH supply by persistent demand, coupled with the cooling CDD, suggests that while short-term volatility may persist, Bitcoin’s long-term bullish outlook remains intact, awaiting external catalysts like shifts in Federal Reserve policy to trigger its next major move.
