On-chain data shows that Bitcoin long-term holders have potentially been selling recently, something that may explain BTC’s continued bearish momentum.
Bitcoin Exchange CDD Inflow Has Recorded Huge Increases Recent
CryptoQuant Quicktake: As an analyst post Explained, large amounts of old crypto tokens are now being deposited on centralized exchanges.
This is a measure of the on-chain. “Exchange Inflow Coin Days Destroyed (CDD).”″ “coin day”After a day of being dormant, 1 BTC will accumulate a certain amount.
The coin day counter of a coin in a wallet that has been sitting there for a while is reset to zero when the coin moves. “destroyed.”
CDD counts the amount of coin-days reset by this method across the network. In the context of the current topic, though, the general CDD isn’t the one of focus, but rather the Exchange Inflow CDD, which only keeps track of the coin days being destroyed through transactions into wallets connected to exchanges.
Here is the chart showing the Bitcoin Exchange CDD Inflow over the last month:
The Bitcoin Exchange Inflow CDD, as can be seen in the graph above, has experienced some significant spikes this month. It would seem that dormant coin deposits have been recent.
CDD spikes are generally correlated to movements from the long-term holders (LTHs)These HODLers accumulate huge amounts of coins days. These spikes suggest that diamonds are now being traded on exchanges.
Exchanges allow holders to sell their coins when one of their services is available. Chart shows the spikes in price earlier in the month coincided with the lows of Bitcoin, suggesting that selling pressure may have been a factor. crash.
This latest, bigger spike has occurred as BTC is trying to recover from recent lows. BTC is still struggling, which suggests that LTHs are the ones who may be holding back the coin.
The Exchange Inflow CDD will continue to evolve in the days to come. It is still to be determined if Bitcoin’s recovery path would be hampered by any further increases.
BTC price
Bitcoin was trading around $57,900 at the time this article was written, an increase of more than 4% in the last week.
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Source: www.newsbtc.com
