Indicator Overview

The indicator measures the total unrealised profit currently held by Long-Term Holders (LTHs) (coins held for more than 155 days) normalised against the Bitcoin market cap.

This ratio compares the latent profit held by the resilient cohort to the total market size, providing a macro, cycle-adjusted view of LTH profitability.

How To Use

LTH Relative Unrealised Profit is a powerful tool for identifying macro-cycle peaks and high-risk periods. High readings (in the historical top zone) indicate that LTH profit is a historically large fraction of the market cap. This signals maximum wealth and incentive for distribution by the strongest hands, typically marking major market tops as the profit overhang is vast. Conversely, low readings (near the bottom of the cyclical range) suggest LTHs hold little to no aggregate profit relative to the market size. This low level of unrealised profit, or even slight loss, is constructive and often occurs near favourable entry points or during accumulation phases where LTHs are unwilling to sell.