Is the momentum of Bitcoin’s bull run on-chain coming to an end? A red indicator suggests so.

Bitcoin OGs are preparing to capitalize on their profits ahead of the upcoming Bitcoin halving, according to a popular indicator among crypto traders. The Value Days Destroyed (VDD) Multiple recently spiked above 4.0, leading experts to speculate that the bull run may be coming to an end. The VDD Multiple is designed to identify instances where the price of Bitcoin may be overheating and approaching its peak during major market cycles. A higher VDD Multiple reading indicates a larger amount of Bitcoin entering the market, likely to be sold. Currently, the VDD Multiple stands at 3.03, having briefly surged to 4.21 on March 28. The last time it went above 4 was in January 2021, but it did not result in a market downturn. With just nine days to go until the Bitcoin halving, the VDD Multiple has surpassed the levels observed before previous halving events. The increase in the VDD Multiple is attributed to significant outflows from Grayscale’s Bitcoin Trust (GBTC). Since the approval of spot Bitcoin exchange-traded funds (ETFs) on January 10, GBTC has lost $15.96 billion in assets. Bitcoin’s price has risen by 56% since the beginning of the year, reaching $69,260 at the time of publication. Please note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.