Recent on-chain data shows a sharp rise in Bitcoin (BTC) movement to exchanges.
summary
- The rise in CDD flows on Binance indicates that long-term Bitcoin holders are moving funds to exchanges to make profits.
- The rise in NUPL indicates improving sentiment and growing unrealized profits among Bitcoin investors.
- The Bitcoin Composite Index is still above 1.0, indicating that there is no confirmed market bottom formation yet.
On April 14, Binance recorded a significant spike in the number of Coin Destructive Days (CDD), reaching around 2.59 million.
Analysts link this rise to long-term holders transferring old currencies. This behavior often appears when investors prepare to take profits after phases of price recovery.
The rally occurred when Bitcoin rose back towards the $75,000 range. The data indicates that older holdings, which have been inactive for long periods, are now entering stock exchanges.
CryptoOnchain Analyst male “This rise indicates that long-term bondholders are locking in profits,” he said, referring to the timing of rising flows.
The NUPL indicator indicates rising market confidence
Another on-chain metric, net unrealized profit/loss (NUPL), also showed movement. The index recently rose to around 0.29, its highest level since late January.
This level is usually associated with the “belief” phase of market cycles. It reflects growing unrealized profits among investors and a shift towards positive sentiment.
Arabic Series Analyst male “Market shows renewed optimism and rising earnings” based on NUPL’s recent trend. This increase follows a period of volatility earlier in the year.
The indicator indicates that the market has regained its balance after the recent declines. There are also signs of new capital entering the market.
The composite indicator does not show a clear bottom formation
The Bitcoin Composite Index (BCI), which combines NUPL and MVRV data, remains above the key level of 1.0. Analysts use this level to evaluate whether the market has bottomed.
Historical data shows that strong accumulation phases often occur when the indicator falls below this limit. Current readings indicate that such conditions have not yet been reached.
ZyCrypto Analyzer male “The indicator remains above the lower levels, indicating normalization rather than a complete reset,” he said when describing the current situation.
This reading indicates that the market is stabilizing rather than entering a deep accumulation phase.
Price movement and market conditions
Bitcoin recently failed to hold above $78,400 and approached $75,000. The decline in prices came in the wake of renewed geopolitical tensions linked to developments in the Middle East.
The asset had gained momentum earlier after reports of progress in Diplomatic talks. It went from under $70,500 to over $76,000 before hitting a local high.
Market uncertainty has returned following conflicting updates on the Strait of Hormuz. This led to the price revision More than $3,000 off peak.
The broader cryptocurrency market also declined, with the total market capitalization falling by about $100 billion.
Disclosure: This article does not constitute investment advice. The content and materials contained on this page are for educational purposes only.
