The recent surge in the Bitcoin price has hit a plateau at around $70,000, and analysts are attributing this to mixed signals from various metrics.
One such metric is exchange outflows, which have been showing signs of accumulation. According to data from CryptoQuant, the net flow (30-day Moving Average) from Binance has dropped below zero, indicating that investors are accumulating Bitcoin rather than selling it. This trend was observed in late March and early April, when the price rallied from $65,000 to $74,000.
However, another metric suggests that holders are distributing their coins into short-term strength. The binary CDD (Coin Days Destroyed) metric measures whether long-term holders' coin movements are higher or lower than average. When readings cluster around 1, it indicates that holders are preparing to sell. In the case of Bitcoin, the reading was 0 for the third time in four months, which could set up conditions for a violent price flush.
Additionally, the accumulation trend score metric from Glassnode shows that larger entities were distributing Bitcoin rather than hoarding it. This means that momentum is unlikely to continue being bullish in the coming weeks.