Binary CDD
Binary indicator: 1 when daily CDD exceeds its long-term average, 0 otherwise. Smooths CDD into a clean regime indicator - sustained 1s indicate distribution.
What is it?
Binary CDD transforms CDD into a discrete indicator: each day receives a value of 1 if daily CDD exceeds the expanding historical median (min. 365 days), and 0 otherwise. The median is preferred over the mean because extreme CDD spikes (custodian migrations, whale awakenings) do not skew the reference threshold. This binarisation completely eliminates amplitude noise, retaining only frequency information: 'how many recent days experienced above-normal destruction?'.
How to read
Binary CDD is a raw 0 or 1 reading per day (1 = day's CDD > historical median). For a smoothed reading, apply a 30-day moving average, then oscillating between 0 and 1. A value near 1 indicates nearly all recent days experienced above-median CDD - a phase of intense old coin activity. A value near 0 indicates prolonged calm.
Key zones
A Binary CDD average above 0.75 (75% of days with elevated destruction) has historically coincided with major distribution or capitulation phases. Below 0.25, old coins are essentially immobile - a potential accumulation phase.
What to observe
Watch for regime transitions: the move from below 0.25 to above 0.50 marks a change in LTH behaviour. The duration of high-frequency phases matters as much as their intensity - sustained elevation over 60+ days is more significant than a 5-day spike.
Historical context
Binary CDD reached prolonged high-frequency levels at the 2013, 2017, and 2021 peaks, reflecting gradual LTH distribution. In 2022, it showed briefer high-frequency episodes, concentrated around the Luna/FTX events.
Expert notes
Our implementation uses the expanding median (min. 365 days) as binarisation threshold. The median is more robust than the mean against extreme CDD outliers. Other analysts use the mean or a fixed percentile (e.g., historical 75th percentile), which modifies indicator sensitivity. David Puell originally proposed the Binary CDD concept to filter amplitude artefacts from raw CDD.
Common mistakes to avoid
High Binary CDD does not imply a particular price direction. It simply marks that old coins are moving frequently. The direction depends on context: distribution in bull markets, capitulation in bear markets, or simple reorganisation independent of the cycle.
Programmatic access
REST API
curl -sS \
'https://api.trinityinsights.io/api/v1/onchain/binary-cdd/history?days=90' \
-H 'X-API-Key: $TRINITY_API_KEY'MCP server
{
"tool": "get_chart_value",
"metric_id": "binary-cdd",
"timeframe": "1y"
}Required tier: free. See the pricing grid for the tier list and the MCP documentation for multi-client configuration.
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Institutional disclaimer
Trinity Insights is an educational and analytical tool. The metric above does not constitute investment advice. Trinity Insights is not a Crypto-Asset Service Provider (CASP) registered under MiCA Regulation (EU) 2023/1114. See the full disclaimer.