March 2024 Bitcoin Peak Likely an Interim Top, On-Chain Data Signals Further Upside

In March this year, Bitcoin spiked to an exclusive all-time high price level, initiating a discussion over the ultimate peak of the asset in the present market cycle. Data from CryptoQuant suggests otherwise as the Binary Coin Days Destroyed indicator for tracking holder activity in the long-term label’s March peak as potentially an “initial top” instead of the final one.

Was Bitcoin’s ATH in March 2024 the Market Top?

“Before we reach the final top, we will likely see renewed activity from long-term holders, with Binary CDD reaching the red zone, signaling the next round of price adjustments.” – By @sachisachan

Link 👇https://t.co/ObC58m5msh pic.twitter.com/xbtZVwpAVI

— CryptoQuant.com (@cryptoquant_com) September 5, 2024

CryptoQuant Analyst Highlights a Further Upside for Bitcoin after the Peak in March

A CryptoQuant analyst going by “Sachi” shared a report focusing on the data concerning the March peak of Bitcoin. The analyst noted that the Binary CDD gauges the coin days’ destruction. Coin days denote the total days during which a coin has seen no activity. In this respect, the indicator considers it as a signal for the movements of the long-term holders. At the time of a huge BTC sell-off by the long-term holders, this metric potentially surges.

The Binary CDD’s spike often signifies a looming market top. Back in March this year, long-term holders specifically pocketed profits, paving the way for a modest jump in the Binary CDD. Nonetheless, importantly, the respective indicator is still out of the “red zone.” It operates as a threshold that is typically reached before the ultimate market top. In line with the historical data, the red zone comprises a period of extreme selling pressure.

This results in a sheer price drop. The absence thereof indicates that the chief crypto token even now has the opportunity for additional upside. The data discloses that a significant slump has taken place in the long-term holder operations since the high of March. This activity dip brings to the front the immaturity of the market. Hence, this reinforces the idea that the Bitcoin bull cycle is still going through its progress.

The Market Is Currently Going Through a Cooling-Off Phase, Data Indicates

On the other hand, long-term holders usually re-enter the market in a bull run’s final stages. This contributes to one ultimate surge before the conclusion of the cycle. According to the CryptoQuant analyst, at this time, the market appears to be experiencing a “cooling-off” time. In this phase, both market sentiment and price are recalibrating following the sudden profits seen earlier in 2024.

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