- Bitcoin’s Value Days Destroyed metric is declining from a 2.4 threshold, reflecting reduced selling pressure from dormant long-term holders.
- CryptoQuant notes easing VDD levels are approaching past correction zones, signaling weakening influence of older coins on Bitcoin’s price action.
- Analysts suggest sustained demand could support recovery as long-term holder selling declines, creating conditions for possible renewed upward market momentum.
Bitcoin VDD signals easing long-term holder pressure, showing declining selling activity from dormant coins as the metric moves closer to previous correction levels.
Long-Term Holders and Market Pressure
The role of long-term holders in shaping Bitcoin’s cycle has once again drawn attention. CryptoQuant, through analysis by @Darkfost_Coc, noted that long-term holders remain a decisive market force. Dormant BTC still has the ability to trigger selling activity when markets reach overheated levels.
This was visible when Coin Days Destroyed (CDD) surged as Bitcoin reached its all-time high. The metric showed older coins moving, marking heavy pressure from long-term holders. Such selling phases have historically disrupted short-term momentum, leading to corrections.
With VDD easing after a notable peak, the same selling activity seems to be weakening. This creates conditions for potential market stabilization if fresh demand emerges.
Value Days Destroyed and Market Signals
Value Days Destroyed (VDD) functions similarly to CDD but adds an important dimension. It factors in the price level at which BTC is moved, thereby measuring selling activity in value-adjusted terms. This approach provides clarity on how selling behavior aligns with broader market conditions.
According to Darkfost, the VDD metric reached 2.4, a level often seen as critical in past cycles. When VDD peaks, the market typically experiences corrections due to the heavy release of dormant coins into circulation.
Currently, VDD has been steadily declining from that threshold. This fall signals that the wave of selling from long-term holders has slowed, reducing pressure across trading activity.
Market Relief and Potential Recovery
In the shared analysis, CryptoQuant emphasized that if easing continues, the Bitcoin market could find short-term relief. A reduced presence of long-term holder selling opens the possibility for renewed upward movement.
For this outcome, however, the presence of steady demand remains key. Without sufficient inflows, easing alone cannot generate recovery momentum. This balance between supply pressure and buyer demand continues to shape Bitcoin’s cycle dynamics.
The chart presented by CryptoQuant shows VDD approaching levels observed during previous market corrections. If this trend persists, the market may stabilize, providing room for stronger demand-driven advances.
