Bitcoin Exchange Inflow CDD Has Recently Observed A Sharp Increase
As pointed out by an analyst in a CryptoQuant , 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.
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:As you can see in the above graph, the Bitcoin exchange inflow CDD saw a spike in its 14-day MA value just recently. This suggests that long-term holders have been making some big deposits to exchanges during the last week. In the past, such spikes in the exchange inflow CDD have usually been bearish for the price of the crypto as these investors usually deposit to exchanges for dumping purposes.
BTC Price
At the time of writing, Bitcoin’s price floats around $19.1k, down 12% in the last week. Over the past month, the crypto has lost 8% in value.
The below chart shows the trend in the price of the coin over the last five days.The value of the crypto seems to have already recovered back above $19k | Source:
Featured image from Jason Hillier on Unsplash.com, charts from TradingView.com, CryptoQuant.com