Bitcoin VDD Falls From 2.4, Easing Long-Term Holder Selling
Bitcoin VDD has declined below the 2.4 threshold, signaling a drop in selling pressure from dormant long-term holders. The Bitcoin VDD metric, a price-adjusted measure of Coin Days Destroyed, multiplies coin age by transfer value to capture the economic weight of on-chain outflows. CryptoQuant analysis indicates that VDD is moving toward levels seen before past corrections. This easing suggests reduced immediate supply risk. However, without renewed buyer demand—reflected in rising spot inflows, on-chain accumulation, or institutional purchases—the market may remain rangebound despite lower Bitcoin VDD readings. Traders should combine Bitcoin VDD with volume, open interest, and demand indicators to refine entry points. Overall, the metric’s decline reduces downside risk but needs supportive demand to fuel a sustained bullish trend.
Bullish
The drop in Bitcoin VDD below the critical 2.4 mark indicates that dormant long-term holders are moving less coinage at high price levels. Historically, elevated VDD readings have preceded short-term corrections as large aged positions hit the market. The current easing of Bitcoin VDD lowers immediate supply pressure, reducing downside risk. If demand indicators—such as spot exchange inflows, on-chain accumulation, and institutional purchases—pick up, this supply removal can translate into a renewed upward trend. In the short term, traders may view this as a bullish signal and adjust risk controls accordingly. Over the longer term, sustained demand will determine whether the eased selling pressure evolves into durable market strength, aligning with past cycles of recovery.