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

BlockBeats News, June 23, CryptoQuant analyst Avocado_onchain posted that the "Bitcoin price recently experienced a sharp decline to around $98,000, but has since rebounded to above $100,000. Although concerns about a 'double top' pattern are spreading in the market and sentiment is gradually turning bearish, as mentioned earlier, on-chain data has not yet shown any clear warning signals.

Overall, Bitcoin appears to still be in a quiet consolidation phase, gathering strength. Looking at the 30-day moving average of Binary CDD, long-term holders are still choosing to hold rather than sell.

In previous analysis, I pointed out that when the Binary CDD 30-day average exceeds 0.8, it often signals that a correction phase is imminent. However, this time, the indicator peaked around 0.6 and began to fall, indicating that the market has not shown signs of overheating. Although the data performance of 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 phase, with a possible 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 see another "staircase-like" market, welcoming a new round of gains after consolidation. Historical experience indicates that Bitcoin's explosive rallies often occur when market attention is waning and sentiment is subdued, so the current quietude may indeed be the prelude to the next major uptrend."