Home Bitcoin News the peak of the bull market has not yet been passed

the peak of the bull market has not yet been passed

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Crypto News

The BeInCrypto editors analyzed some of the Bitcoin (BTC) on-chain metrics, including Coin Days Destroyed (CDD) and Coin Days Destroyed (Binary CDD). These indicators estimate the age of the bitcoins being moved.

BTC has been appreciating for some time now, but the CDD is still below the levels of three months ago. This means that old coins do not move, and long-term holders still do not intend to part with the cryptocurrency.

CDD bitcoin

CDD estimates the life cycle of a coin involved in a transaction. In particular, it shows how many days before the transaction the coin was stationary.

Every day, while the coin lies motionless, accumulates in the so-called coin days. Once it is used in a transaction, these days burn out.

Thus, the CDD indicator shows how many “coin-days” are consumed on any given day. The higher this value, the longer the coins lay motionless before being used. The indicator often rallies before price peaks and during the first correction after a crash. This is due to the fact that long-term investors leave the market feeling weak.

During the 2020/2021 bull market, the BTC rate skyrocketed on January 8. Then the price broke through $ 40,000 for the first time. Then market participants began to take profits and CDD reached 36 million.

Another peak was recorded on July 31st. This is a bearish signal as the rally was only a correction after a long period of sell-off.

However, in the current bullish trend, the CDD has only grown to 15 million (black arrow). This value is comparable to the indicators of late May-early June, when the BTC rate fell to $ 30,000.

Thus, BTC is growing, but long-term holders are in no rush to spend their coins. This means that the bull market has not yet reached its peak.

CDD bitcoin. Source: Glassnode

Binary CDD

For binary CDD, the average CDD is calculated. If the CDD for a specific day is higher than the average for a specific period, it is assigned a value of 1, if lower, then 0.

Since August 1, the values ​​have exceeded the average only eight times. This is a bullish signal as BTC is rising and the average CDD is falling. This on-chain picture confirms the bullish outlook.

Binary CDD. Source: Glassnode

Here you can read the latest technical analysis for Bitcoin (BTC).

Disclaimer

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