The Bitcoin Price Rise Signal Has Not Yet Emerged in This Final Stage

On-chain data shows that Bitcoin Binary CDD has not yet reached peak levels as seen in some recent price peaks of this cryptocurrency. The 30-Day MA of Bitcoin Binary CDD is currently at about 0.6 In the CryptoQuant Quicktake post, an analyst discussed the latest trends in the binary CDD for Bitcoin. “Coin Days Destroyed” ( CDD ) refers to an on-chain indicator that tracks the total number of ‘coin days’ reset across the network. A day coin is the amount that a cryptocurrency token accumulates after being in an inactive state on the blockchain for one day. When a coin that has previously been idle for a number of days is transferred across the network, its day coin counter will automatically reset to 0, and the number of day coins it has accumulated is considered to be ‘destroyed’. Whenever CDD records a large spike, it is a sign that non-network participants are acting. Generally, long-term holders only break their silence when they have a plan to sell, so this trend can prove to be bearish for BTC. Binary CDD, a real indicator of interest in the current discussion, helps to more easily determine whether the current HODLer trading activity is significant when compared to the past. As its name suggests, this metric can take two values: 0 and 1. The binary CDD is 0 when the CDD is below the historical average and 1 when the CDD is above. Note that because the indicator is performing a historical comparison, it adds another weighting factor to the CDD: adjusting for the total circulating supply at that time. This is done because the supply of the asset increases over time. Here is the chart shared by quant showing the trend of the (MA) 30-day moving average of Bitcoin Binary CDD over the past few years:

As can be seen in the chart above, the 30-day Bitcoin Binary CDD has followed a recent upward trajectory, implying that long-term holders are likely to become more active. The increase of this indicator occurs as BTC begins a new bullish phase, bringing its price close to the all-time high (ATH). While long-term holders tend to be resolute entities, they still step out to take profits during significant price increases. Therefore, the recent trend in the 30-day MA of binary CDD may not be too surprising. After the latest increase, this index has reached a level of 0.60 ( if you find it confusing because this value is different from 0 and 1 of binary CDD, consider this just an average value over 30 days, almost always lying between these two extreme values ). As the analyst highlighted in the chart, this value is still below the 0.80 level that the indicator broke during both the strong bull run last year and the euphoric phase of the bull run in 2021. With this model, there is a possibility that the current Bitcoin price increase still has room for growth, at least from the perspective of HODLer allocation.