Compass Investments

– A senior market analyst going by the pseudonym Darkfost pointed to a factor that influenced the recent rally, noting:

It seems that this consolidation phase has raised doubts among all groups of investors, including the most experienced ones, such as veterans.

Other circumstances may also have influenced this movement, including the recent Coldcard hack, which prompted investors to switch to personal wallets.

A study by AMBCrypto focusing on long-term holders (LTHs)a category of investors who have held the asset for at least 155 daysprovides a more detailed picture. The analysis was based on the LTH Binary Coin Days Destroyed (CDD) metric, which helps determine whether inactive tokens were being moved.

Importantly, most of the selling pressure in the market (based on a 7-day simple moving average) was observed from August 19 to 25, which most likely reflects the moment when many of these LTHs sold their assets.

However, after peaking on August 25, the LTH Binary CDD indicator fell from a high of 0.85 to its current level of 0.14.

This decline indicates growing calm among these holders, as they have been moving fewer of their tokens in recent weeks.

In recent days, the spot market has seen increased accumulation, suggesting significant buying of this asset.

On September 4, the net flow in the spot market reached -$252.40 million following $2.81 billion in accumulation of the asset. However, by noon on September 5, the net flow had decreased significantly to approximately -$4.03 million.

Net flow in the Bitcoin spot market.

Accumulation is currently on the rise in the market, and if this trend continues, it could strengthen Bitcoins position.

Spending activity among original Bitcoin holders (OGs) has increased, indicating that some long-term investors may be taking profits.

Accumulation in the spot market remains steady, while a decline in activity among long-term holders (LTHs) signals easing selling pressure.

Olayivola Dolapo is a crypto analyst at AMBCrypto whose goal is to make digital assets more transparent and understandable for everyone. His journey began with early market experience that highlighted the importance of in-depth fundamental knowledgea principle that underpins his work.

Bitcoin ETF inflows totaled $770 millionwill the curse be broken in September?,detected_source_language:RU