Bitcoin has experienced a rocky start to June, dropping 16% last week to around $60,000, marking a 50% decline from its all-time high. However, on-chain data, specifically the CVDD metric, suggests that the market may be nearing a bottom. This indicator, historically reliable, signals that long-term holders might be accumulating, despite current price volatility. What to watch next is if this on-chain signal translates into price stabilization and a potential reversal, indicating a shift from panic selling to accumulation by conviction buyers.
The CVDD metric signaling a potential Bitcoin bottom indicates that long-term holders are accumulating despite price drops. This suggests fundamental strength beneath current market volatility, potentially setting the stage for future price recovery for Bitcoin and the broader crypto market.
This story highlights the growing divergence between on-chain fundamentals and short-term price action, a common feature of market bottoms. It suggests that while retail sentiment is weak, smart money is quietly accumulating, implying a potential shift from distribution to accumulation is underway.
Bitcoin price performance in June has gotten off to a rocky start, with prices now down 50% from the market’s all-time high. In the last week alone, the premier cryptocurrency has declined by 16%, forcing the price to around $60,000 for the first time since February. Notably, the heavy market loss h