After a brief drop to $98,000 over the weekend, Bitcoin (BTC) has recovered and is now trading above $101,000 at the time of writing. While concerns about a potential double top persist, on-chain data has yet to show any major warning signs.<\/p>\n
According to a recent CryptoQuant Quicktake post by contributor Avocado_onchain, despite broader market sentiment turning bearish, BTC has not yet displayed any significant red flags. In fact, the cryptocurrency still appears to be in a consolidation phase.<\/p>\n
Notably, the 30-day moving average (MA) of Binary Coin Days Destroyed (CDD) indicates that long-term holders are continuing to hold onto their BTC rather than selling. This suggests that investors remain optimistic about Bitcoin\u2019s potential for further upside in the near term.<\/p>\n
For the uninitiated, the 30-day MA Binary CDD smooths out daily fluctuations to show how frequently long-term Bitcoin holders are moving their coins over a month. A lower value suggests strong holding behavior and accumulation, while a higher value may indicate distribution or selling pressure from experienced holders.<\/p>\n
The analyst noted in a previous analysis that when Bitcoin\u2019s Binary CDD exceeded 0.8, it was typically followed by a steep correction. However, this time, the indicator has peaked around 0.6 and is now on the decline \u2013 suggesting the market is far from overheating. They added:<\/p>\n
Although the data may not align perfectly from cycle to cycle, this moderation below 0.8 still implies the market may be entering a consolidation period, and further price or time correction could follow.<\/p>\n
The analyst emphasized that this indicator does not signal the end of the bull run. Rather \u2013 similar to the previous two market phases \u2013 Bitcoin could be following a \u201cstaircase-like movement,\u201d where periods of consolidation are followed by a strong upward leg.<\/p>\n
They concluded that BTC historically tends to rally when market attention fades and sentiment remains quiet. Therefore, the current period of low volatility could be a precursor to Bitcoin\u2019s next major move to the upside.<\/p>\n
While the current bearish sentiment may have raised hopes for further price pullback for the largest cryptocurrency by reported market cap, both technical<\/a> and on-chain indicators suggest otherwise.<\/p>\n For example, short positions have been rising sharply within the $100,000\u2013$110,000 range, increasing<\/a> the likelihood of a short squeeze \u2013 which could drive BTC to a new all-time high (ATH).<\/p>\n