Indicator Overview

The indicator tracks the total amount of Coin Days Destroyed (CDD) for the entire Bitcoin market. CDD is a transactional volume metric that weights the amount of BTC moved by the number of days the coins were held. High values indicate that a large volume of old coins (coins that have been dormant for a long time) is being moved. Low values indicate that only young coins or a small volume of coins are moving. This metric measures the collective activity and distribution coming from the entire supply base.

How To Use

Coin Days Destroyed (CDD) is primarily used to track the selling and distribution behavior of long-term investors. Look for high spikes in CDD, as these signal that large volumes of coins that had been dormant for months or years are suddenly being spent. These spikes historically correlate with major market tops, as they represent long-term holders distributing their coins and taking profit into periods of high demand. Conversely, very low, suppressed readings indicate that long-term holders are choosing to keep their coins dormant, suggesting they have little interest in selling at current prices. This prolonged low activity is typical during deep bear markets or consolidation phases, indicating that strong hands are accumulating and that the market may be near a major bottom. An increase in CDD from a low base can signal the start of a distribution phase, but the significance depends on the sustained volume of coin days being destroyed.