Bitcoin Market Reset Underway as Dormant Coins Stir

Bitcoin's on-chain data suggests that the market is undergoing a reset, despite rising Coin Days Destroyed (CDD) activity. CDD measures how long coins have remained inactive before being moved or sold.

The recent spikes in CDD may indicate a sell-off, but other indicators such as MVRV and NUPL suggest a more balanced market. MVRV tracks the ratio of Bitcoin's current price to its realized value, while NUPL measures the net unrealized profit/loss of holders.

Long-term holders appear to be confident in the market, with low exchange inflows indicating limited selling pressure. This suggests that the current movement may not be a major sell-off, but rather a transition phase for Bitcoin.