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As Bitcoin consolidates above $105K, on-chain metrics paint a picture of mature market behavior – where diamond hands meet sustained network growth.
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BTC’s VDD multiple reaches sub-0.75 levels while maintaining a price above $105,220, marking a significant shift from April 2024’s high.
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Daily active addresses stabilize between 71K and 89K amid steady transaction volumes.
Bitcoin stabilizes above $105K as on-chain metrics reveal mature market behavior, signaling potential for future growth and stability.
VDD Multiple analysis reveals an accumulation pattern
The Bitcoin VDD Multiple chart shows a notable shift from mid to low ranges in early 2025, with current readings hovering in the lower band (<0.75). This transition from higher multiples seen in April 2024 (>2.9) to current levels suggests a significant change in long-term holder behavior. The metric’s decline coincides with Bitcoin’s price stability above $100,000, indicating reduced movement of older coins despite price appreciation.
Source: Glassnode
Bitcoin’s network activity and daily transactions
Bitcoin’s daily active addresses have maintained steady levels between 71,000 and 89,000 throughout January 2025, while transaction volumes show consistent baseline activity. This stability in network metrics, coupled with the low VDD Multiple, suggests a mature market phase where long-term holders are showing strong conviction despite price volatility.
Source: Santiment
The correlation between active addresses and transaction volumes has remained tight, indicating organic network usage rather than speculative churning. This healthy network activity provides a strong foundation for Bitcoin’s current price levels above $105,220.
Technical structure and market implications
Bitcoin’s price action shows remarkable resilience, currently trading at $105,220.36 with a 1.42% increase. The Moving Average (MA) cross between the 50-day (99,251.53) and 200-day (77,341.17) MA maintains a strong bullish structure, supporting the current price levels.
Source: TradingView
The combination of low VDD Multiples and strong technical indicators suggests a market in accumulation rather than distribution. Historical patterns indicate that periods of low Bitcoin VDD Multiples often precede significant price movements, particularly when accompanied by steady network activity and strong technical foundations.
Looking ahead: Bitcoin market dynamics
The current market structure, characterized by low VDD Multiples and sustained network activity, presents an interesting divide. While long-term Bitcoin holders demonstrate strong conviction through reduced coin movement, the steady increase in active addresses suggests continued market participation and potential new entrant interest.
This pattern of behavior, combined with Bitcoin’s technical strength above $105,000, indicates a market potentially preparing for its next significant move. The reduced volatility in older coins, as shown by the VDD metric, often precedes periods of increased market activity and price discovery.
Conclusion
In summary, Bitcoin’s recent performance showcases a blend of sustained price levels, healthy network activity, and strong technical indicators. Investors should closely monitor these trends as they may dictate the next phases of market movement.
