Bitcoin (BTC) may have reached a market bottom after liquidity outflows that started in October 2023 erased roughly $1.04 trillion from the crypto market, according to recent presstime data.
CVDD Signals a Potential Value Floor
The Cumulative Value Days Destroyed (CVDD) metric, which weighs destroyed coin‑days against Bitcoin’s current market value, fell to an exceptionally low 0.3 reading, as reported by CryptoQuant. This figure suggests that long‑term holders are retaining a substantial portion of their assets, thereby hinting at a fair‑value floor for the coin.
Historical analysis shows that similar CVDD lows preceded major price rebounds in 2019 and 2022, with Bitcoin’s price plunging into the zone before launching toward new highs. If the pattern repeats, the recent swing between $60,000 and $64,000 could represent the base from which investors drive the next upward move.
200‑Week Simple Moving Average Provides Structural Support
On the weekly chart, Bitcoin is trading near its 200‑week simple moving average (SMA), a level that has repeatedly acted as a support hub for the asset. The last descent to this SMA triggered a consolidation period that stretched from July 2022 to October 2023, during which the price hovered around the $27,000 mark.
Following that consolidation, Bitcoin surged to a peak close to $73,000 in early