Bitcoin (BTC) Price Prediction 2024-25: BTC Falls Further Down the Charts, but On-Chain Data Hints Otherwise

In March 2024, Bitcoin hit a new all-time high. It has since sparked debates among investors about whether this marked the peak of the bull market

As Bitcoin hit a new all-time high in March 2024, sparking debates among investors about whether this marked the peak of the bull market, on-chain data seemed to suggest otherwise.

In fact, metrics like Coin Days Destroyed (CDD) indicated that the market may still have had room for further upside.

Bitcoin's top in yet?

In March 2024, Bitcoin saw a notable spike in the Coin Days Destroyed (CDD) metric, signaling that some long-term holders took profits around the all-time high. However, further analysis revealed that the CDD has not yet reached the critical “red zone.” This zone typically signals the final market top.

What this means is that while the March peak represented a significant interim high, it likely wasn’t the ultimate peak of the current cycle. By extension, the trend in the CDD metric indicated that there is still potential for further price hikes in the coming months.

An analysis of Bitcoin Long-term Holders (LTH) supply data from Glassnode also revealed a positive sentiment that aligns with the trend observed in the Coin Days Destroyed (CDD) metric.

According to the same, these long-term holders began increasing their accumulation in July, when Bitcoin’s price started to decline.

Between 19 July and 06 September, the supply of Bitcoin held by long-term holders grew from approximately 13.5 million BTC to over 14.1 million BTC. This accumulation trend suggests that long-term holders maintained confidence in Bitcoin’s long-term prospects, despite the recent price drop, and were not exiting their positions en masse.

Long-term holders' continuous presence in the market is a sign of their belief in Bitcoin's potential for further growth. This is especially true as they tend to sell their holdings during bull market peaks.

However, an interesting observation emerged from this analysis. Despite the price decline, the analysis also showed that the supply of Bitcoin in loss also decreased. This could be an indication of long-term holders continuing to HODL their BTC.

As Bitcoin's price dropped to around $56,000 at the time of this analysis, further analysis of its daily chart by AMBCrypto revealed a decline of over 3% in the last trading session.

The decline brought its price down to around $56,000. At the time of writing, the decline seemed to continue with an additional 0.7% drop, pushing the price to approximately $55,700.

The Relative Strength Index (RSI) for Bitcoin had dropped slightly below 40, indicating that it entered the oversold zone. Simply put, selling pressure may have peaked, which could signal a potential price rebound shortly.

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