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Bitcoin Long-Term Holders Refuse To Budge As Movements Remain Low

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On-chain data shows that Bitcoin long-term holders have remained adamant recently as their movements remain at low levels.

Bitcoin Binary CDD Has Continued To Be At Low Values Recently

According to data from the on-chain analytics firm Glassnode, mature coins aren’t showing much movement despite the recent volatility in the asset’s price. The relevant indicator here is the “Coin Days Destroyed” (CDD), which, to understand the concept of “coin days,” needs to be looked at first.

A coin day is a quantity that 1 BTC accumulates when it remains dormant on the blockchain for 1 day. When any coin that has remained dormant for some number of days, and hence, has accumulated some coin days, is finally transferred on the network, its coin days counter naturally resets back to zero.

The coin days that the coin in this example had previously been carrying are said to be “destroyed.” The BTC CDD keeps track of the total number of such coin days being destroyed or reset throughout the blockchain on any given day.

The normal version of the CDD isn’t the one of interest here, however; a modified version called the “binary CDD” is. This metric compares the current CDD value with the long-term trend.

As its name already suggests, this indicator can only have two values: 0 and 1. When its value is 0, it means the CDD is less than the long-term average right now, while it being equal to 1 implies the CDD is higher at the moment.

Now, here is a chart that shows the trend in the 7-day SMA Bitcoin binary CDD over the last few years:

The value of the metric seems to have been quite low in recent days | Source: Glassnode on Twitter

As displayed in the above graph, the 7-day SMA Bitcoin binary CDD has had pretty low values for a while now. This implies that there haven’t been many coins with a high age moving recently.

Generally, whenever the CDD has elevated values, it’s a sign that the long-term holders (LTHs)

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Author: Hououin Kyouma

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