Bitcoin (BTC) Binary CDD Is Yet to Reach the Same Peak as During the Last Few Tops

On-chain data shows the Bitcoin Binary CDD is yet to reach the same peak as during the last few tops in the cryptocurrency’s price.

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In a recent interview with Ben Armstrong, host of the popular crypto YouTube channel Ben Armstrong, a CryptoQuant analyst has discussed an on-chain indicator that could hint at whether the current Bitcoin rally still has room to grow.

According to the analyst, the 30-day moving average (MA) of the Bitcoin Binary CDD is still underdeveloped compared to the indicator's peaks during the last few tops in the cryptocurrency's price.

30-Day MA Of Bitcoin Binary CDD Is Currently Sitting Around 0.6

In a CryptoQuant Quicktake post, the analyst explained that the ‘Coin Days Destroyed’ (CDD) indicator keeps track of the total number of ‘coin days’ being reset across the Bitcoin network.

A coin day is the quantity that one token of the cryptocurrency accumulates after having stayed dormant on the blockchain for one day. When a coin that was previously still for some number of days is moved across the network, its coin days counter naturally resets back to zero, and the coin days that it had accumulated are said to be ‘destroyed.’

Whenever the CDD registers a large spike, it's a sign that dormant hands on the network are on the move. Generally, the long-term holders only break their silence when they plan to sell, so this kind of trend can prove to be bearish for BTC.

The Binary CDD, the actual indicator of interest in the current discussion, makes it easier to identify whether the current HODLer transaction activity is significant or not when compared to the past.

As its name already suggests, this metric can take on two values: 0 and 1. The Binary CDD is equal to 0 when the CDD is below the historical average and 1 when it's above.

Now, here is the chart shared by the quant that shows the trend in the 30-day MA of the Bitcoin Binary C

More precisely, since the indicator is making a historical comparison, it adds another weighting factor to the CDD: an adjustment with respect to the total circulating supply at the time. This is done because the asset's supply is going up with time.

The 30-day MA of the Bitcoin Binary C

As the analyst has highlighted in the chart, the 30-day MA Bitcoin Binary C

The post Bitcoin: Key On-Chain Indicator Suggests Bulls May Have More Room To Run appeared first on Benzinga.

On-chain data shows that the Bitcoin (CRYPTO: BTC) Binary CDD is yet to reach the same peak as during the last few tops in the cryptocurrency's price.

In a recent CryptoQuant post, an analyst has discussed the latest trend in the Binary CDD for Bitcoin. The "Coin Days Destroyed" (CDD) refers to an on-chain indicator that keeps track of the total number of "coin days" being reset across the network. A coin day is the quantity that one token of the cryptocurrency accumulates after having stayed dormant on the blockchain for one day. When a coin that was previously still for some number of days is moved across the network, its coin days counter naturally resets back to zero, and the coin days that it had accumulated are said to be "destroyed."

Whenever the CDD registers a large spike, it's a sign that dormant hands on the network are on the move. Generally, the long-term holders only break their silence when they plan to sell, so this kind of trend can prove to be bearish for BTC.

The Binary CDD, the actual indicator of interest in the current discussion, makes it easier to identify whether the current HODLer transaction activity is significant or not when compared to the past. As its name already suggests, this metric can take on two values: 0 and 1. The Binary CDD is equal to 0 when the CDD is below the historical average and 1 when it's above.

Now, here is the chart shared by the quant that shows the trend in the 30-day moving average (MA) of the Bitcoin Binary C

The 30-day MA of the Bitcoin Binary C

As the analyst has highlighted in the chart, the 30-day MA Bitcoin Binary C

The post Bitcoin: Key On-Chain Indicator Suggests Bulls May Have More Room To Run appeared first on Benzinga.