Has the on-chain bull run momentum of Bitcoin come to an end? Indicator signals warning.

Bitcoin OGs are preparing to capitalize on their gains 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 analysts to speculate that the bull run may be coming to an end. The VDD Multiple is designed to identify instances where Bitcoin’s price may be overheating and nearing its peak during major market cycles. A higher reading suggests that more Bitcoin is entering the market, likely to be sold. Currently, the VDD Multiple stands at 3.03, having briefly reached 4.21 on March 28. This is double the reading at the beginning of the year, indicating increased spending velocity. However, past instances of the VDD Multiple going above 4 did not result in a market downturn but rather a surge in Bitcoin’s price. With just nine days left until the Bitcoin halving, the VDD Multiple has surpassed levels observed before previous halving events. The recent surge in the VDD Multiple is attributed to significant outflows from Grayscale’s Bitcoin Trust (GBTC), as well as the approval of spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission. GBTC has seen a total outflow of $15.96 billion in assets since the approval of Bitcoin ETFs. Bitcoin’s price has risen by 56% since the beginning of the year, reaching $69,260 at the time of publication.