This chart combines several signals to track the behavior of long-term holders (LTH):
Profit/Loss Bands (colored curves):
1000% (pink), 500% (yellow), 350% (orange), 150% (light blue), and -25% (dashed gray).
These show how far BTC is above LTH cost basis. Approaching the +500% band usually signals extreme profit and higher risk of a market top.
Spending Binary Indicator (blue line): Reflects LTH spending activity. High values = increased selling pressure.
High Spending (green bars): Periods of heavy LTH selling, typically at bull market peaks.
Bottom Alert (purple bars): Loss realizations by LTHs, often aligning with market bottoms.
Chart Insights
2017–2018: As BTC neared +1000% profit, LTH selling (green) spiked. Soon after, purple bottom alerts marked the bear market low.
2020–2021: Strong LTH selling reappeared during the bull run. After the 2021 peak, purple signals indicated cycle bottoms.
2022–2023: At $15K–20K, multiple purple bars confirmed a bottom before recovery began.
2024–2025 (Current): BTC is near ATH again. Green bars show profit-taking, but far below 2017/2021 extremes, suggesting controlled selling. The price sits within the 150%–350% profit band, leaving room to climb, but risk rises as it approaches 500%.
Price Outlook
Short Term (weeks/months): Controlled LTH selling may keep BTC range-bound. Upside potential to the $124K–$178K zone (350%–500% profit).
Mid Term (late 2025): If green bars intensify like 2021, a cycle top is likely. BTC could peak above $150K.
Long Term (into 2026): No new purple bottom alerts → no confirmed bear cycle yet. Market still appears in the final stages of the bull run.
In summary, the LTH Behaviour metric works as a top-and-bottom cycle indicator. Current signals point to continued upside potential, though the probability of a peak increases as BTC nears higher profit bands.
Written by PelinayPA
