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 methods have been deployed to calculate Binary Liveliness. Both methods seek to identify whether the Liveliness metric is increasing (1) or decreasing (0) relative to some baseline:
Green: Will return a 1 when Liveliness is higher than its 30-day moving average, and 0 otherwise.
Blue: Will return a 1 when Liveliness is higher today than the previous day, and 0 otherwise. A 30-day moving average is then applied to the result.
Application
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 typically associated with periods of significant coin dormancy, investor HODLing and usually strong accumulation.