• The transfer of 49,000 Bitcoin worth $1 billion associated with U.S. law enforcement caused a spike in the coin days destroyed (CDD) metric.
• A spike in the CDD usually precedes price volatility, but exchange inflow data shows no significant spikes yet.
• Currently, BTC/USD is trading above support between $21,500 and $21,950 which is encouraging for buyers despite negative news this week.

BTC Price Volatility Brace

The transfer of 49,000 Bitcoin associated with U.S. Law enforcement that was worth $1 billion caused a spike in the on-chain metric known as ‘coin days destroyed’ (CDD). This metric measures the weighted movement of Bitcoin based on the time it was last moved from an address and is calculated by multiplying the amount of Bitcoin transferred by the number of days since BTC was added to an address. A spike in this indicator usually means that there will be price volatility ahead with bears having a slight advantage over bulls; however some long-term investors may move their Bitcoin to leverage more upside gains on futures market as well.

No Major Sell Off Signs

Despite the CDD spiking to two month highs at present, it does not necessarily suggest that there will be a large price move such as $1,000 -$1,500 anytime soon; there have been no major sell off signs detected yet by exchange inflow data which showed around 5,000 BTC (worth around $100 million) being moved out of exchanges within last 24 hours only 20% out of 49k BTC moved to an exchange indicating low risk for increased selling pressure right now.

Current Price Movement

Currently BTC/USD pair is trading above support between $21,500 and $21,950 which is encouraging for buyers despite all negative news that has come forth this week; confirmation will arrive when consecutive daily closes are done above this support area.

Investment Advice & Recommendations

This article does not contain investment advice or recommendations; every investment and trading move involves risks and readers should conduct their own research before making any decisions related to investments & trades.

Market Analysis Summary

A large transfer of Bitcoin associated with U.S law enforcement caused a noticeable spike in ‘Coin Days Destroyed’ (CDD), a key holder metric which usually precedes price volatility with bears having slight advantage over bulls; however further confirmation can only be arrived when consecutive daily closes are done above support between 21K-$22K which is currently looking positive despite negative news coming forth this week; investors should always do their own research before making any decisions related to investments & trades as there are risks involved in every trade or investment made.