On-chain data shows selling from Bitcoin long-term holders may have been behind the recent dip in the crypto’s price below $19k. Bitcoin Exchange Inflow CDD Has Recently Observed A Sharp Increase As pointed out by an analyst in a CryptoQuant post, there has been some possible selling pressure coming from the long-term holders recently. The relevant indicator here is the Bitcoin “Coin Days Destroyed” (CDD). A coin day is defined as the amount accumulated by exactly 1 BTC when sitting idle for 1 full day. The total number of coin days in the market, therefore, represent the sum of time each coin in the supply has been dormant for. When these coins that had previously been sitting still show some movement, the coin days gained by them are said to be “destroyed” as they reset back to zero. The total number of these is precisely what the CDD metric measures. Related Reading: These Two On-Chain Signals Precede Bitcoin Falls, Suggests Analyst Now, since long-term holders keep their coins for long periods, they naturally accumulate significantly higher coin days than the rest of the market. As such, spikes in the CDD can be a sign of activity from this cohort. Here is a chart that shows the trend in the Bitcoin CDD not for the entire network, but specifically for exchange inflow transactions: Looks like the 14-day moving average value of the metric has been quite high in recent days | Source: CryptoQ...
