Bitcoin faces a potential correction as long-term holders increase their selling activity, with Coin Days Destroyed reaching an 18-month high. This metric, which measures the number of days since coins were last moved, indicates heightened selling pressure. Meanwhile, active Bitcoin addresses have dropped to an 11-month low, despite high transaction counts, suggesting that speculative transactions are inflating on-chain activity rather than genuine adoption.
The current rally appears fragile, with a critical support level at $113.7K. A break below this level could trigger deeper pullbacks. Immediate resistance is identified between $117K and $118.6K, with a breakout above $118.6K potentially signaling renewed momentum. Traders are advised to closely monitor Coin Days Destroyed, active addresses, and key price levels to evaluate the sustainability of the current rally.
Bitcoin Correction Looms as Long-Term Holders Sell, Active Addresses Decline
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