BTC on-chain analysis: CDD sinks to a new annual low

Check out Bitcoin’s on-chain (BTC) indicators, particularly Coin Days Destroyed (CDD), to determine the age of the coins currently being marketed.

CDD has fallen to a new year low, showing that most of the new coins in the market are being sold. Short term owners suffer enormous losses.

Coin days destroyed

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.

It has fallen steadily since Jan 8th when it hit a high of 1.98. It will hover around the 0.6-1 range through the end of May, while it is currently at an annual low of 0.25.

This shows that the sale is not driven by long term owners.

Source: Glass knot

This is also visible if you look at the losses of the short-term owners (light red), which are at annual highs. Long-term owners, on the other hand, hardly suffered losses (light blue).

Source: Twitter

Short-term holders of SOPR also posted one of the highest losses in the entire history of BTC prices.

Source: Twitter

Long-term indicator

Coin Years Destroyed (CYD) is simply a total CDD value spinning over 365 days. It is also used to visualize the behavior of long-term owners.

It is currently at 247, a value close to the value of the end of 2019 and well below the high of 2018.

Source: Glass knot

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

By June 1, there were only four days when the CDD was above average. This means that the number of sales by permanent owners is decreasing.

Source: Glass knot

SN_Nour

According to Beincrypto

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page