Key Takeaways
- •Bitcoin has surpassed the $94,200 resistance level, advancing towards $97,500 as bullish momentum intensifies.
- •On-chain data, specifically Value Days Destroyed (VDD) at approximately 0.53, indicates that long-term holders are predominantly retaining their assets rather than selling.
- •A low VDD during a price rally suggests that the price increase is driven by genuine demand, not by speculative short-term selling.
Bitcoin has extended its recent rally, successfully breaking above the $94,200 resistance level and moving towards the $97,500 zone. On-chain indicators suggest a strengthening market structure, characterized by genuine demand rather than speculative excess. Data indicates that long-term holders are largely not participating in current selling activities, which reinforces confidence in the ongoing price movement.
According to on-chain metrics, the current rally is unfolding without significant distribution from older Bitcoin holdings. This pattern has historically been associated with healthier price expansions, as opposed to short-lived speculative spikes.
Bitcoin Breaks Resistance as Holders Refuse to Sell
“Historically, when Bitcoin’s price rises while VDD remains low, the market tends to be in a healthy expansion phase, where demand absorbs the available supply without generating structural selling pressure.” – By @oro_crypto
Long-Term Holders Show Limited Selling Activity
A key indicator supporting this analysis is Value Days Destroyed (VDD). This metric measures the total value of bitcoins spent, weighted by the number of days they were held before the transaction. Higher VDD readings typically signify that older coins are being sold, while lower values suggest that recent buyers are driving network activity.
Throughout January 2026, Bitcoin's VDD has averaged around 0.53. This level is considered historically low, indicating that the majority of coins transacting on the network are relatively young. Long-term holders, conversely, appear to be maintaining their positions despite the rising prices. Market observers often interpret this behavior as a sign of strong conviction rather than a rush to take profits.
When coins that have been held for extended periods remain inactive during a price breakout, it mitigates the risk of sudden supply shocks entering the market. This dynamic can contribute to sustaining upward momentum, as demand absorbs the available circulating supply without triggering substantial sell pressure.
On-Chain Structure Supports the Breakout
Bitcoin's advance beyond its resistance level has been accompanied by steady price action, rather than sharp moves driven by liquidations. Historically, periods where prices rise while VDD remains suppressed tend to reflect organic demand growth, as opposed to rallies fueled by leverage.
Analysts suggest that this pattern positions the market in what is often described as a "healthy expansion phase." In this phase, buyers drive prices higher without forcing long-term participants to exit their positions. Consequently, the current rally possesses stronger structural support compared to rebounds driven solely by short-term traders.
Meanwhile, Bitcoin has shown signs of recovery despite recent price fluctuations. According to CryptoQuant, long-term holders have continued to accumulate assets amidst short-term selling pressures.