Definition. Binary Liveliness is an oscillator that builds on the principles of the Binary CDD metric. It is designed to help identify periods of accumulation (low signal) and high distribution by older coins (high signal). Two variants are plotted over Liveliness (orange line) and price (grey).

Technical. Two methods have been deployed to calculate Binary Liveliness. Both seek to identify whether the Liveliness metric is increasing (1) or decreasing (0) day over day:

1. Orange columns: scores a 1 on days where the 30-day moving average of Liveliness is rising (day-over-day), and 0 otherwise; a 7-day moving average is then applied to the result.

2. Blue line: scores a 1 on days where Liveliness is higher than the previous day, and 0 otherwise; a 30-day moving average is then applied to the result.

Both oscillate between 0 and 1.

Interpretation.

• Binary Liveliness will trend higher and sustain high values as larger volumes of older coins are spent. This increases the liquid coin supply, and signals that experienced investors are exiting their position, often near local and market macro tops.

• Binary Liveliness will trend lower and sustain low values when Liveliness is in a prolonged downtrend. This is typically associated with periods of significant coin dormancy, investor HODLing and usually strong accumulation.

Because the binary transform discards magnitude and reads only persistence of direction, the oscillator is robust to single large transactions and instead highlights sustained regimes of old-coin spending or dormancy.

Notes. Coined by Checkmate (2021) and CryptoVizArt (2021). Built from Liveliness. The companion oscillator on coinday destruction is Binary CDD, and the cohort decomposition of Liveliness is at Long/Short-Term Liveliness.