Indicator Overview

The indicator measures the aggregate dollar value of profits currently held by Long-Term Holders (LTHs), entities whose coins were acquired more than 155 days ago.

This metric is calculated as the total difference between the current Bitcoin price and the acquisition price of all LTH-held coins that are currently in profit. It represents the total latent selling pressure from the most resilient investors. A rising value signals increasing market appreciation and wealth accumulation for the strong hands.

How To Use

LTH Unrealised Profit is a critical metric for identifying the late stages of a bull market and the risk associated with LTH distribution. Record or near-record spikes indicate massive unrealised gains held by the resilient core of the market. Historically, these peaks represent major cycle tops because the high incentive to sell old, profitable coins leads to large profit-realisation and distribution events. Conversely, low, compressed readings suggest minimal LTH profit or even aggregate loss. This low level of unrealised profit indicates that the market is either in a bear market or an accumulation phase, reducing the risk of mass profit-taking from the LTH cohort.