Bitcoin experiences unusual fluctuations: A signal of cooling demand or just a strategic retreat?

The Coin Days Destroyed index (CDD) of Bitcoin (BTC) has just fallen sharply to 500,000, marking a significant drop from the previous peak of over 1 million. This trend indicates that long term investors remain cautious, even as BTC approaches its historical peak.

Notably, the 30-day moving average of CDD further reinforces this "cooling off" trend, revealing a subtle shift from a strong profit-taking wave to a quiet accumulation phase – a signal that long-term confidence remains intact.

Overall, the current data reinforces the view that the "diamond hands" – referring to steadfast investors – have not yet abandoned their long term holding strategy.

Source: CryptoQuantOn the contrary, the number of unused transaction output UTXO ( that are currently at a loss has surged by 42.81%, reaching 12.23 million, while the number of profitable UTXOs has slightly decreased by 1.2%, to 305.15 million. This indicates that a portion of investors have recently bought in at high prices and are currently "holding losses."

However, this pressure seems to be localized and has not spread throughout the market — at least at this point in time.

![])https://img-cdn.gateio.im/webp-social/moments-154b8dac5c5f7f327b722e5a7ff482ea.webp(Source: CryptoQuant## Are the buyers still there?

The Taker Buy/Sell ratio of BTC has edged up to 1.028, an increase of 1.04%, revealing a slight advantage for the bulls in the market.

Although it has just crossed the neutral threshold, this number is still enough to show that a cautiously optimistic sentiment is dominating the derivatives trading community. However, the current buying force is still quite cautious, not strong enough to create a clear breakout in price.

This is a positive but gentle signal – like the first drops of rain in the season: indicating that confidence is returning, although it has not truly exploded yet.

![])https://img-cdn.gateio.im/webp-social/moments-99100cac34b3aff3f02e68bcf5aec0f8.webp(Source: CryptoQuant## The volatility of BTC remains high, but is under control.

The latest volatility index recorded at 0.011 - a figure that indicates unexpected surges but lacks sustaining power. Since mid-April, such spikes have continuously appeared, yet they are still not strong enough to change the overall trend of the market.

This reflects a clear reality: traders are maintaining a cautious attitude, rather than falling into a state of panic. Although the fluctuations on the chart may feel intense, the market is still under control and has not fallen into a chaotic spiral.

![])https://img-cdn.gateio.im/webp-social/moments-fea44d1a714b14faea122ecb9df64874.webp(Source: Santiment## What does the fall in network growth say about demand for Bitcoin?

The Network Growth index ) of Bitcoin has witnessed a sharp decline, from over 500,000 down to just 76,500 — a significant drop that may reflect signs of weakening interest from new users in the network.

This trend indicates that the number of new wallets interacting with the Bitcoin blockchain is falling sharply, which means that natural demand is gradually cooling down. The strong increase in June is likely just a result of a short-term euphoria, lacking a solid foundation to sustain long term.

Source: SantimentOverall, the market is currently in a tug-of-war: selling pressure from long term investors remains weak, unrealized losses are increasing, buying pressure is not strong enough, while the pace of network expansion is slowing down. Bitcoin has not sent clear signals about reaching a peak, but there is also no strong enough momentum to break out.

If on-chain indicators such as Network Growth or the Taker Buy/Sell ratio do not improve soon, BTC is likely to continue quietly moving sideways in the accumulation zone — a quiet phase before the next big wave appears.

SN_Nour