Analyst: Bitcoin Hodlers Still Opting to Hold Long Term Rather Than Sell, Market May Be Entering Consolidation Phase

On June 23rd, the CryptoQuant analyst Avocado_onchain put forward that the "Bitcoin price recently witnessed a sharp drop to approximately $98,000, but it has then rebounded to above $100,000. Although concerns about a 'double top' pattern are spreading in the market and the sentiment is gradually turning bearish, as was mentioned earlier, the on-chain data has not yet presented any clear warning signals yet. Overall, Bitcoin seems to still be in a quiet consolidation stage and is gathering strength. Looking at the 30-day moving average of Binary CDD, long-term holders are still choosing to hold rather than sell. In the previous analysis, I pointed out that when the Binary CDD 30-day average exceeds 0.8, it usually indicates that a correction phase is about to come. However, this time, the indicator reached its peak around 0.6 and started to decline, suggesting that the market has not shown signs of overheating. Although the data performance in each cycle is not exactly the same, the mild trend of this cycle that did not exceed 0.8 may still indicate that the market is entering a consolidation stage, and there may be a further price or time correction to follow. Importantly, this does not mean the end of the bull market cycle. On the contrary, similar to the previous two stages, we are likely to witness another 'staircase-like' market and welcome a new round of gains after consolidation. Historical experience shows that Bitcoin's explosive rallies often occur when market attention is fading and the sentiment is subdued. Therefore, the current tranquility may indeed be the prelude to the next major uptrend."