The adjusted CDD takes the number of coin days destroyed and normalizes it against the total supply of Bitcoin. This helps to reveal trends in the market where long-term holders, considered to be more informed or experienced investors, move their coins. Large spikes in adjusted CDD may indicate significant selling activity from these holders, which can often coincide with major market events or price shifts.

This metric highlights the foundational price support for Bitcoin, reflecting the conviction of long-term holders. It can act as a potential price floor during market downturns, as these holders are less likely to sell during bear markets. When the price approaches or falls below the LTH Realized Price, it often signals a strong support level.