On-Chain BTC Analysis: Long-Term Headlines Lying Inactive During Bounce

BeInCrypto takes a look at the on-chain indicators for Bitcoin (BTC), specifically the Coin Days Destroyed (CDD) indicator. This indicator is analyzed to determine the age of the traded currencies and whether long-term holders are exiting during the recent price rally.

Different versions of the CDD show below-average values, a sign that the old currencies are not trading. refore, long-term holders do not appear to be exiting the market during the current rally.

CDD

CDD is an indicator that measures how long a BTC remains unspent before being traded. Each day that is not spent, accumulate a “day of coins.” When the currency is traded, these accumulated days are destroyed.

CDD reading shows how many days of coins are destroyed each day. A high reading indicates that coins that were previously inactive for a significant period of time are now moving. Typically this occurs during significant price increases and during rebounds after sharp declines.

After the 2017 BTC high (black arrow) was reached, the CDD has risen sharply on numerous occasions. This was a sign of old coins coming out of the rally with almost all bounces. In hindsight, it meant that the old currencies were using these spikes to exit the market before the correction continued.

During this period, the CDD increased fivefold (black circles), reaching values ​​between 16.5 million and 32.2 million.

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However, the same did not happen after the 2021 peak. While the CDD peaked at 19.3 million at the time of the peak, it moved above 15 million only twice during the correction, on April 30. and on May 24.

refore, unlike the 2017 correction, the old coins do not break out during the rebound, despite the significant drop from the high BTC price of $ 64,437.

Glass node graph

Binary CDD

binary CDD is an indicator that measures whether each specific day has had a reading above the average days of destroyed coins. Returns a value of one if the CDD for the day was greater than the average CDD. On the contrary, it gives a value of zero if it is not.

Since July 30, no day has had a higher than average number of days destroyed, indicating that fewer and fewer old coins are being traded.

Glass node graph

In addition to this, the 90-day destroyed currency indicator gives a similar reading, which is a moving sum of CDD. It shows a relatively low value of 197.975. This is below the lower threshold of 200,000.

Furthermore, the reading is in stark contrast to those that followed the start of BTC corrections in both 2013 and 2017.

On both occasions, the 90-day CDD rose sharply, indicating what was an exit rally for the old currencies before the continued decline. In 2013 it reached values ​​of 580,000, while in 2017 it even rose to 600,000 (black arrows).

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refore, almost all versions of CDD show different readings of the main rallies before the start of long-term corrections. A similar reading is also found in NUPL.

Glass node graph

For the latest bitcoin (BTC) analysis from BeInCrypto, click here.

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