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Exchange Inflow CDD
This indicator is a noise-removed version of CDD with respect to exchange dumping signal

Definition

Coin Days Destroyed (CDD) of coins destroyed by flowing into exchanges. High values indicate that more long-term holders moved their coins for the purpose of possible selling. This indicator is a noise-removed version of CDD with respect to exchange dumping signal.
Exchange Inflow CDD=ospent outputs to the exchangelifespanovalueo\text{Exchange Inflow CDD}=\sum_{o \in \text{spent outputs to the exchange}}\text{lifespan}_o*\text{value}_o

Interpretation

Exchange Inflow CDD is a subset of Coin Days Destroyed (CDD) where coins are destroyed by flowing into exchanges. This indicator is noise-removed version of CDD with respect to exchange dumping signal. Also, note that exchange to exchange inter flow's value was excluded to clear the noise.
Exchange Inflow CDD specifically screens transaction that involved inflow to exchanges' wallets and represent its value as CDD. CDD gives more weight to
1) longer-lived UTXO
2) Amount of UTXO is holding BTC.
Weighting more on these makes the indicator sensitive to long-term holders’ movement and show sentiment & behavior.

By value itself

  • High: Long-held coins or great amount of coins or both are moving into the exchange -Volatility Risk or Possible Trend Reversal
A large number of alive days are destroyed which indicates that long-term holders' coins are exposed to selling. It is especially notable that coins that held large alive days or in quantity are moving into exchange, indicating possible sell pressure or trend reversal.
  • Low: Long-held coins are moving in less amount

Link to Our Data