Waiting for the light green bottom signal to appear again

Bitcoin: Value Days Destroyed Multiple (VDD Multiple) is an on-chain metric for Bitcoin that measures the ratio of short-term spending velocity to the long-term average level, helping to identify potential market cycle tops and bottoms. It is based on Coin Days Destroyed (CDD), which is the number of coin days destroyed (giving higher weight to Bitcoin that has not moved for a long time to reflect the behavior of long-term holders), and then multiplied by the current Bitcoin price to obtain Value Days Destroyed (VDD). The calculation formula for VDD Multiple is: the average of 30-day VDD divided by the average of 365-day VDD

When VDD Multiple < 0.75 (the light green area in the chart), it reflects a reduction in short-term spending velocity relative to the annual average level, indicating that long-term holders are selling old coins less frequently, and the overall market spending vitality is lower. This usually suggests that the market is in a cooling period, accumulation phase, or potential cycle bottom, with long-term holders more inclined to hold rather than sell, possibly representing relative undervaluation or buying opportunities.

Note: The current high reading of this indicator is due to the recent address consolidation by Coinbase, and the data pollution caused by this event will be eliminated 30 days after it occurs.