BITCOIN CDD BULLISH
Today, I’m bringing in a new chart for us — Bitcoin CDD or Coin Days Destroyed.
To give just a brief overview of this chart, this metric shows the number of coin days that are destroyed each day. The higher the value means there is movement transacted on long-term investors’ holdings. This indicator also often spikes on or before the market tops due to long-term investors liquidating their assets.
Let’s take a look at the chart below. CDD values of over 20M have historically matched the market tops and the relief rallies after its crash.
Now, where are we currently in the market in terms of CDD?
CDD value, as of Jan 13, 2022, is around 5.33M – which upon looking at the first chart above, is an area where accumulation happens. This is also a time where long-term investors are not seen moving their holdings.
So, at the moment, it is safe to say that investors are holding on to their bitcoins with conviction.
For more charts relevant to market top readings, stay tuned. 😉
DISCLAIMER: THIS IS NOT FINANCIAL ADVICE.
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