Briefing
The current bull market is entering its mature phase, characterized by strategic, segmented profit-taking from experienced Long-Term Holders (LTHs) rather than a single, panic-driven blow-off top. This pattern suggests institutional demand is actively absorbing the distributed supply, effectively stretching out the cycle top. The most critical data point confirming this shift was the extreme Value Days Destroyed (VDD) spike in March, which marked the initial heavy LTH selling, followed by significantly more moderate, sustained waves of redistribution.
Context
The central question for most market participants is whether the recent price volatility signals the definitive end of the bull cycle or simply a necessary consolidation. People are wondering if the big, experienced players are quietly dumping their coins in a panic, or if the market has the structural support to continue its ascent toward a final, higher peak.
Analysis
The key metric is Value Days Destroyed (VDD) , which measures the economic significance of coin movement. VDD tracks not just how much Bitcoin is moved, but how long those coins were held, effectively weighing older coins more heavily. A high VDD spike means long-term holders are spending their supply for profit. The observed pattern shows an initial extreme spike in March, followed by smaller, more moderate selling waves.
This tells us the initial distribution was heavy, but subsequent selling has been strategic and controlled. This segmented distribution, where selling is absorbed in waves, is the primary reason the cycle top is being prolonged, confirming a more mature, institutionally-influenced market structure.
Parameters
- Key Metric ∞ Value Days Destroyed (VDD) – Measures the economic weight of coin movement by factoring in how long coins were held.
- Initial Selling Signal ∞ Extreme VDD spike in March 2025 – Confirmed the start of heavy Long-Term Holder (LTH) profit-taking.
- Final Top Indicator ∞ Peak Flag Ratio – Triggers when the spot price reaches approximately 11 times the Long-Term Holder Realized Price.
- Current Selling Behavior ∞ Segmented and moderate redistribution waves – Indicates strategic, controlled supply distribution.
Outlook
This strategic selling suggests the market is not yet ready for a final, catastrophic blow-off top. The near-term outlook is one of continued consolidation and volatility as experienced supply is gradually transferred. The market is likely building a base for a final ascent. A key confirming signal to watch for is a sustained, extreme spike in the Peak Flag Ratio (price/LTH realized price) to the 11x level, which would historically confirm the final cycle top is imminent.
Verdict
The market top is a drawn-out process of strategic distribution, not a panic event, confirming the cycle’s final, higher peak is still pending.
