Bitcoin Faces Worst Quarter Since 2019 but On Chain Signals Point to Rebound

Draft Title: "Bitcoin's Worst Quarter Since 2019, Veteran Investors Begin Accumulating Again"

@Max, I would like you to handle this article. I believe you are the right person for this topic due to your expertise in Bitcoin. Please provide an in-depth analysis of the accumulation strategies of experienced Bitcoin holders.

Let's begin the analysis. Bitcoin is recording its worst quarter since 2019, and it is expected to end the quarter down 25% from its all-time high. In this situation, some veteran investors are signaling a shift from selling to holding and accumulating, which can be considered an important factor suggesting the potential for a medium-term price increase in Bitcoin.

First, let's examine the Value Days Destroyed (VDD) indicator. VDD is an on-chain metric that measures the days a Bitcoin remained unmoved before it was traded, tracking investor behavior. High VDD indicates that Bitcoin held for a long time is moving, which could mean selling pressure from whales or long-term holders. Conversely, low VDD suggests that trading is mostly done by short-term holders. Currently, low VDD shows that investors are accumulating Bitcoin, expecting future price increases. This could enhance Bitcoin's medium-term growth potential.

Additionally, Bitcoin's Sell-Side Risk Ratio has hit a record low of 0.086%, another positive indicator. A low Sell-Side Risk Ratio means there is little pressure to sell Bitcoin in the market, which can be interpreted as room for price increases. Historical data shows that whenever the Sell-Side Risk Ratio dropped below 0.1%, there was a strong price rebound of Bitcoin. For instance, after such instances in January and September of 2024, Bitcoin reached $73,800 and new peaks.

However, not all indicators are positive. Recent analysis by BeInCrypto warns of a potential formation of a death cross—a technical indicator that occurs when the short-term moving average crosses below the long-term moving average, which can be interpreted as a signal of potential price decline. Therefore, investors need to closely monitor this technical pattern.

Market volatility expected in early April also needs to be considered. Particularly, the major retaliatory tariff announcement expected from President Trump is cited as a primary cause of this volatility. Since economic and political factors can significantly impact the Bitcoin market, investors should pay attention to these variables.

Overall, while Bitcoin is facing its worst quarter since 2019, the accumulation by veteran investors and the drop in the Sell-Side Risk Ratio are positive signs. However, the potential for a death cross and increased market volatility are factors that still require caution.

Max, I reviewed your analysis. Here is some feedback.

First, the explanation of Bitcoin's VDD indicator was very clear and good. However, to make it more impactful for the readers, try to explain the significant influence of this indicator on the actual market in more concrete terms. For example, "how a low VDD can instill confidence in investors", would be a helpful addition.

Second, the content regarding the sell-side risk ratio was good as well. However, when citing historical data, avoid the repetition of overly specific numbers and instead describe the historical patterns more simply. For instance, you could say something like, "There were numerous instances in the past when prices rebounded as this ratio decreased", simplifying the explanation.

Lastly, mentioning market volatility due to President Trump's announcement is really crucial. But here, too, it would be better to provide supplementary explanations to help readers easily understand. For example, "The reason why political factors cause unpredictable impacts on Bitcoin prices", would add more value.

You only need to fix about three things. You can start writing the article. Do you understand?

I've reviewed this article. Firstly, the title is appropriate as it grabs attention while also summarizing the current situation of Bitcoin well.

The summary sentences effectively convey the main points of the article, but they could be more specific in delivering the content. For example, instead of 'positive changes detected in on-chain data,' it could be 'positive signals of market confidence detected in on-chain data.'

The flow between paragraphs is natural. The transition from the current state of Bitcoin to indicator analysis and political variables makes it easy to read.

However, explaining in more detail why long-term holders are not moving their assets and how this maintains market confidence would help readers understand better. Additionally, highlighting the warning signs from technical analysis indicators and political variables would be beneficial.

I approve this article for finalization. @olive, please prepare a representative image for the article.