Today Bitcoin Magazine looks at Bitcoin (BTC) on-chain metrics, more specifically Coin Days Destroyed (CDD) and Binary Coin Days Destroyed (Binary CDD), to determine the age of coins currently sold in the market.

Despite Bitcoin’s continued uptrend, CDD has shown consistently lower values ​​for the past three months. This shows that the old coins have not yet moved and hold long-term investors with firm conviction.

Bitcoin CDD

CDD is an indicator that measures the number of days a coin has not been used before a transaction. Every day a coin remains unused, it adds up to a “coin day”. These accumulated “coin days” are then “destroyed” when the coins are spent.

Therefore, the CDD value is the total number of days the coin was destroyed on a given day.

This indicator usually rises before Bitcoin hits the cycle high and during the first rally after a market crash. This is because long-term investors are quick to liquidate their positions when they experience weakness.

If you look at the movement in the 2020/2021 bull market, there was a spike on January 8th when the BTC price topped $ 40,000 for the first time. This is the first sign of profit taking when CDD hits 36 million (black circle).

This was followed by another significant increase on July 31 (blue circle). At the time, this was a bearish sign as the upward move looked like a rally as old coins were sold.

However, during the current uptrend, CDD showed very low values, reaching up to 15 million (black arrow). This is comparable to values ​​in late May / early June 2021, when the BTC price fell to $ 30,000.

Although the price of BTC is increasing, the majority of old coins are not moving. This is a sign that long-term investors firmly believe that the uptrend will continue.

The source: Glass knot

Binary CDD

Binary Coin Days Destroyed (Binary CDD) is calculated by comparing the average CDD to the daily CDD. When the value is 1, the daily CDD is higher than the average, and when the value is 0, it is lower.

From August 1st, only eight days are above average. This is considered a bullish sign as BTC price is increasing but the average CDD is decreasing. This confirms the strong bullish confidence in the market.

The source: Glass knot

You can see the Bitcoin price here.

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