"The Cumulative Value Days Destroyed (CVDD) metric has historically called Bitcoin price cycle lows almost to perfection across every cycle since Bitcoin's inception. This metric begins with Coin Days Destroyed, a measure that weights Bitcoin transfers by the duration they were held before movement. For example, holding 1 Bitcoin for 100 days produces 100 coin days destroyed when transferred, while holding 0.1 Bitcoin for the same result requires 1,000 days of holding."
"The CVDD takes this one step further by measuring the USD valuation at the time of transfer rather than just the coin days destroyed quantity alone. This value is then multiplied by 6 million to produce the final metric. When examined across Bitcoin's entire history, the CVDD has indicated bear market lows with accuracy extending across every cycle. Currently, the CVDD sits at approximately $45,000, though this level trends upward over time as the metric naturally evolves with new transfers and Bitcoin's price appreciation."
A framework aggregates multiple on-chain and network-derived metrics to identify potential Bitcoin price floors during bear cycles and to forecast upside targets. The CVDD metric weights coin days destroyed by USD valuation at transfer, amplifies that value by a multiplier, and has historically signaled cycle lows with high accuracy. Large CVDD spikes reflect transfers by long-term holders. The Balanced Price metric subtracts Transferred Price from Realized Price to highlight downside levels and historically accurate bear cycle lows. Aggregation of these indicators aims to provide a comprehensive basis for market-cycle price guidance.
Read at Bitcoin Magazine
Unable to calculate read time
Collection
[
|
...
]