# Absolute Dormancy - Block Based (Raw CDD)

### 📘 What is Absolute Dormancy (Raw CDD)?

**Absolute Dormancy** measures the total “coin-days” destroyed during a specific block. A “coin-day” is created when 1 coin remains unmoved for 1 day. When coins move, their accumulated coin-days are “destroyed.”

This metric answers a simple question:

> **How much long-held Bitcoin has just been spent?**

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### 🧭 What Is It Used For?

* **Identifying Smart Money Activity:**\
  Large spikes in dormancy typically reflect movements by long-term holders or institutional wallets.
* **Predicting Market Shifts:**\
  Dormancy spikes often precede trend reversals—especially during overheated market phases.
* **Assessing Liquidity Risk:**\
  Higher dormancy implies higher probability of large capital re-entering the market (either for sale or redistribution).

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### 🎯 Why Block-Based Matters

Unlike daily-averaged indicators, Absolute Dormancy here is calculated **per block**, offering:

* **Higher resolution**
* **Faster anomaly detection**
* **Lower smoothing bias**

> This makes it especially powerful for detecting sudden whale activity, without waiting for daily aggregation.

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### 🔎 What to Watch For

* **Spikes:**\
  A tall, sudden rise in dormancy indicates the movement of old, dormant coins—often before price tops.
* **Flatline Behavior:**\
  Long periods of low dormancy reflect low long-term holder activity—common during accumulation or calm phases.
* **Sudden Clusters:**\
  Consecutive high values often suggest structured sell activity or institutional repositioning.

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### ⚙️ How It Works

* Each coin accumulates “age” (coin-days) while unmoved.
* Once moved, those coin-days are added to the day’s or block’s **b\_cdd** value.
* No adjustment or normalization—pure raw total.

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### 🧠 Insights

* “Dormancy spike + price rally = caution.”
* “Low dormancy during uptrend = strong hands are holding.”
* “Block-by-block dormancy lets us catch events hours before daily metrics react.”