Bitcoin on the Rise Again!

So, it seems like Bitcoin decided it was time to put on its party hat and strut back up to around $94,000! This price tag reminds us all of its glory days back in early December 2025. But hold your horses! While our friend BTC is flexing those bullish vibes, some not-so-great news is sneaking in through the back door, showing that on-chain activity is having a bit of an existential crisis.

What’s Up with the VDD?

Bitcoin’s price might be experiencing a uplifting recovery, but its on-chain shenanigans are entering uncharted waters—think of it as a calm before the storm, except we’re not sure there’s even a storm coming. Enter the Bitcoin Value Days Destroyed (VDD) metric, which is taking a nosedive and giving us serious frown lines.

Explaining VDD: The Number Cruncher

Now, let’s address what the heck VDD even is. This nifty little tool measures what long-term holders are getting up to, in a way that’s kind of like the BTC Coin Days Destroyed (CDD) metric—only cooler! It adds a price tag to the days held, so when you’re spending that UTXO, you’re not just losing time; you’re also losing value, my friend. Think of it like a long-term relationship that suddenly goes sour—ouch!

What’s the Scoop?

A quick glance at the VDD shows us it’s hit some of the lowest points of this market cycle. Darkfost, a market guru and CryptoQuant writer, spilled the tea on Twitter, pointing out that this dip follows a heavy long-term holder distribution that’s sadly sent out “We’re breaking up” vibes.

What Does This Mean for the Market?

Here’s the deal: the market is barreling into a territory where VDD is sinking like a rock, hovering around 0.55, which is pretty much double the annual average. This trend has been typical after significant corrections, kind of like that reliable friend who always texts you after a breakup. It suggests long-term holders are in a committed relationship with their coins and are opting to hang tight for now.

Bouncing Back or Bust?

As the sun set on Tuesday, Bitcoin took a quick dip, making everyone question whether it was playing tricks with its price stability. However, Milk Road, the wise sage of the crypto realm, has some encouraging words, suggesting that the market is still basking in bullish glory.

Upward Channel Shenanigans

According to Milk Road’s findings, BTC has been dancing in an Ascending Channel pattern since 2022, where it’s been making higher highs and higher lows—a bit like a never-ending treadmill workout! Despite the recent plunge testing the strength of the support line, that line held firm as if it were a stubborn mule, allowing Bitcoin to bounce back like a champ! So, unless Bitcoin decides to take a nosedive below this stronghold, it looks like the party is still on—sideways moves notwithstanding!