Key Points
- Bitcoin’s price fell to $76.6k before bouncing back to $82.8k, with a chance for deeper correction.
- Whale activity and Coin Days Destroyed (CDD) metrics suggest the worst of the selling might be over.
Bitcoin’s [BTC] price experienced a dip, falling to $76.6k on March 11th. Following this, a bounce of 8.2% was observed, pushing the price to $82.8k within 24 hours. The current downtrend is strong, and it remains uncertain whether this drop represents the final dip.
Attempting to predict the bottom of the dip is often futile. However, understanding how far the price is from the bottom can be helpful for investors. Metrics can provide some clarity on this.
Whale Activity and Consolidation
The behavior of whales, or large-scale investors, can provide insights into potential future movements of Bitcoin. Analyst Darkfost noted a decrease in the exchange whale ratio on Binance, the largest crypto exchange by volume.
The Exchange Whale Ratio measures the proportion of the top 10 inflows compared to total inflows on an exchange. A higher value indicates increased whale activity, which typically signals greater selling pressure.
Despite the recent decline in this metric, Bitcoin remains 11% below the $92K range lows observed in January. The STH Realized Profit/Loss Ratio stood at -10.9%, aligning with trends observed in previous periods when Bitcoin hit new two-month lows before entering a consolidation phase.
Older Coins and Selling Activity
The Coin Days Destroyed (CDD) metric, which signifies the selling of older coins, has shown a decline in the 7-day Moving Average (7DMA) since December. This suggests a decrease in selling activity and reduced movement among older tokens.
This could be a positive sign, indicating that accumulation may soon follow. While sellers remain dominant overall, the most intense phases of selling seem to have passed.
