Binary CDD is a metric that rises when coins that have remained dormant for a long time begin to move. When long-term holders are inactive, the value tends to stay low.
If Binary CDD rises while Bitcoin reaches new all-time highs, it can indicate that long-term holders are transferring their coins—often to sell them to short-term participants.
Applying a 30-day moving average to this metric shows that it spiked above 0.8 during the latter phase of the 2021 bull run. Similarly, when Bitcoin reached all-time highs in March and December of 2024, Binary CDD also surged past 0.8.
Currently, Binary CDD is rising again alongside Bitcoin’s price rebound and is now hovering around the 0.6 level. If it continues upward and surpasses 0.8, it may signal that long-term holders are preparing to realize profits.
Written by Avocado_onchain
