Binary CDD simplifies Coin Days Destroyed into a binary signal — either 1 (above average) or 0 (below average) — based on whether the current CDD exceeds its long-term average. Summing this over time reveals sustained periods of heavy or light old-coin movement.
Binary CDD simplifies Coin Days Destroyed into a binary signal — either 1 (above average) or 0 (below average) — based on whether the current CDD exceeds its long-term average. Summing this over time reveals sustained periods of heavy or light old-coin movement.
Binary CDD transforms the noisy raw Coin Days Destroyed metric into a clean binary value. Each day is assigned a 1 if CDD exceeds its long-term average, or a 0 if it falls below. By summing these binary values over a rolling window (commonly 30 or 90 days), analysts can identify sustained periods where old coins are consistently active or consistently dormant.
When the rolling sum of Binary CDD is persistently high, it indicates that long-term holders are spending day after day — a pattern characteristic of distribution phases near cycle tops. Isolated spikes in raw CDD can be misleading (a single large transaction can cause a one-day spike), but Binary CDD filters this by requiring sustained elevated activity to produce a high reading.
Conversely, when Binary CDD remains persistently low for weeks or months, it signals that old coins are firmly at rest and only young coins are circulating. This dormancy pattern aligns with accumulation phases where long-term holders display conviction by refusing to sell. Binary CDD is particularly useful because it removes the magnitude bias of raw CDD, focusing purely on whether old-coin activity is above or below normal.
Raw CDD is very noisy — a single whale moving old coins can cause a massive spike that doesn't reflect broader market behavior. Binary CDD smooths this by only asking whether CDD is above or below average each day, then summing over time to detect persistent trends rather than one-off events.
Common windows are 30 days and 90 days. A 30-day window is more responsive and useful for shorter-term analysis, while a 90-day window provides a smoother view of sustained trends. The choice depends on whether you are looking for tactical signals or strategic cycle positioning.
SOPR tells you whether coins are moving at a profit or loss, while Binary CDD tells you whether old coins are consistently active. Together, they paint a fuller picture: high Binary CDD plus high SOPR means old coins are being sold at profit (distribution), while low Binary CDD plus low SOPR means mostly young coins are trading at a loss (capitulation).