Bitcoin On Chain Analysis: Old coins haven’t been sold lately

Bitcoin Magazine will look at Bitcoin’s On-Chain (BTC) metrics, which are related to the longevity of coins. More specifically, vivacity, average spent life (ASOL), and coin days destroyed (CDD).

Bitcoin vibrancy

The liveliness indicator is a metric that gives insights into the behavior of the owners. The value increases as the holders begin to liquidate their positions and decreases when these coins dormant. The indicator fluctuates between 0 and 1.

In the last two years the indicator moved in the range from 0.59 to 0.63 and showed no significant change.

Therefore, instead of focusing on absolute values, it is more important to note whether the slope of the indicator is moving up or down.

On-chain bitcoin

The source: Glass knot

After BTC recovered in July, this indicator also rose (black circle). However, since the end of August, when the price of BTC neared $ 50,000, its vibrancy has fallen.

This means that the old coins did not move during the latter part of the rally.

On-chain bitcoin

The source: Glass knot


Average Spent Output Lifespan (ASOL) is a metric used to measure the average age of each transaction. The values ​​are shown as the average age (in days) of each transaction, but do not take into account transactions with a lifetime of less than an hour. So a value of 50 means that the average age of each transaction is 50 days.

That year, ASOL hit highs of 87.48 on January 13th and 111.29 on August 21st (black circle). The first came before the previous all-time high in April, the second after the sharp rise in July.

Hence, these two periods mark the profit of old coins.

Since then, however, the ASOL has steadily declined and is now approaching 50. This means that profit-taking on old coins has declined, which is in line with the signal from the liveliness indicator.

On-chain bitcoin

The source: Glass knot


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.

The movement of CDD is very similar to that of ASOL.

An interesting observation, however, is made when looking at the total 90-day volatility of the CDD.

Readings between 200,000 and 300,000 (highlighted in blue) are considered low values. The sharp deviation below this is usually near the bottom (black circle). The only case where there was no reversal was in October 2018 when BTC price continued to fall despite CDD metrics bottoming out.

More recently, the 90-day CDD hit a low of 151,000 on November 4. If history rhymes, it could mean that a low has been reached.

On-chain bitcoin

The source: Glass knot

You can see the BTC price here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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