Crypto Analysis Company Examined Two Special Onchain Metrics in Bitcoin, Issued a Warning!

The cryptocurrency analysis firm Alphractal has released a statement supporting significant selling potential by Bitcoin's Long-Term Holders (LTH).

The analysis of the company is based on two key on-chain metrics that indicate increasing activity among this group of investors. Alphractal analysts argue that these two metrics potentially indicate a significant selling wave.

Reserve Risk Indicators

• VOCDD & MVOCDD: These metrics provide insights into the sustainability of the market by analyzing the coin destruction rate and comparing Bitcoin's current price with the average purchase cost of LTH.
• Reserve Risk: This indicator provides clues about market sensitivity by evaluating whether Bitcoin is overbought or oversold.
• MVOCDD Signal: A tool used to determine market peaks and show when Bitcoin may be approaching a peak.

Corrected Terminal Destroyed Coin Days (CDD Terminal Corrected)

• This refined metric adjusts the traditional Destroyed Coin Days calculations by taking into account the circulating supply of Bitcoin. It provides a clearer perspective on the activity of LTH by highlighting significant movements or periods of inactivity.

According to the analysis company, historically, LTH benefits from selling during Bitcoin price rallies, as the average purchase costs are significantly lower than the current market prices. This profit-taking behavior often creates local resistance levels that can suppress Bitcoin's upward momentum for weeks or even months.

According to the analysis company, although BTC is expected to continue rising in the near future, the data indicates that LTH is no longer interested in holding assets. This situation could shape market dynamics in 2025.