Can BTC buy at the bottom? Today, let's study a new indicator together Let's first take a look at what Coin Days Destroyed means Coin Days Destroyed (CDD) is an on chain analysis metric used to measure the holding and transfer behavior of tokens in the Bitcoin (or other cryptocurrency) network. Specifically, it reflects the total age of coins that have been 'destroyed' during a certain period of time, helping us understand the level of activity in fund flows and the behavior patterns of holders. Definition and Calculation Coin Days: The duration (in days) during which a token is held in place. For example, if you hold 1 BTC for a full 10 days, the token has accumulated 10 coin ages. Destroyed: When this token is transferred or spent, the accumulated coin age is' destroyed 'and no longer accumulates. Coin Days Destroyed： The total age of all transferred tokens during a certain period of time. Calculation formula: CDD=∑ (number of transferred tokens x number of days the token is held) For example, if you have 2 BTC and hold it for 50 days without moving it, you have accumulated 2 x 50=100 coin ages. If you transfer these 2 BTC to someone else today, these 100 coin ages will be destroyed and the CDD will increase by 100. If a total of 5 million coin ages were destroyed in all transactions on the network that day, then the CDD for that day would be 5 million. Meaning and purpose Measuring market activity: High CDD: means that a large number of tokens held for a long time have been transferred, which may be due to old holders (long-term investors) selling or an increase in market trading activity. Low CDD: indicates that most tokens are in a holding state and the market is relatively calm, which may be due to strong confidence or a strong wait-and-see sentiment among holders. Judging the behavior of the holder: If CDD suddenly surges, it may indicate that "old coins" are being sold off, and market sentiment may turn bearish (such as profit taking or panic selling). If CDD remains low, it indicates that long-term holders are unwilling to sell and may be optimistic about the future market. Relationship with price: In a bull market, an increase in CDD may be related to profit selling; In a bear market, a decrease in CDD may indicate that investors are choosing to 'hoard' and wait for a rebound. Historical analysis: At the peak of the Bitcoin bull market in 2021, CDD often experienced peaks as many long-term holders sold to lock in profits. Short term fluctuations: If one day CDD surges while prices fall, it may be due to large traders clearing their positions. Next, let's discuss another question: Is the current market at its bottom? August 5, 2024 is a big bottom in the bull market, dropping to 49000, The value of CDC is 2.6m The number of CDC on April 7th, 25 years ago was 1.8m, and the CDC on April 9th has not yet been released I can't say for sure, but the downside is limited, just like the difference between buying 16000 and 17000 at the end of 2022 According to this indicator, you can buy at the bottom in November 2022, sell in July 2024, and sell in December 2024 Basically, they buy at the lowest point and sell in the highest point area This article is sponsored by Bitget | @ Bitgetzh