Cumulative Value-Days Destroyed (CVDD) is the ratio of the cumulative USD value of Coin Days Destroyed and the market age (in days). Historically, the indicator has been an accurate indicator for absolute market bottoms. This was in 2015, 2019, 2020 (back swan), and the latest bottom 2022.
Because of the almost perfect accuracy of the major historical lows, based on this data, I added into CVDD the 50 moving average of the market price to create the "Accessing Tops" indicator.⚫
With the "Accessing Tops" indicator, we see that whenever the market price touches or exceeds this indicator, it shows that the market price is extra hot and will usually then approach a correction trend. The signs on the chart recognized this.🔴🟡
In the bull market, Bitcoin will also approach or near its cycle peak when the market price begins to maintain above the indicator threshold.
At least for now, with the momentum of the belief that there will soon be approved spot ETFs, and if there is not any bad news, gets only good news, the best further possible peak may occur when short-term investors decide to hold positions and continue to push BTC up to reach the indicator threshold.
Written by BinhDang
