Indicator Overview

The STH MVRV Heatmap visualises the Short-Term Holder Market Value to Realised Value (STH MVRV) ratio directly onto the asset's logarithmic chart. The indicator is presented as a series of colour-coded dots overlaid on the price, with the colour intensity representing the level of short-term holder profitability. A deep rust colour indicates short-term holders are slightly underwater or near break-even, transitioning to a blazing orange/yellow to denote significant profit-taking potential. This unique view links the current market cycle to STH sentiment.

How To Use

This heatmap is best used for identifying market cycles and areas of high stress for recent participants. Clusters of deep rust/brown dots often coincide with capitulation events or macro bottoms, signalling periods where short-term holders are selling at a loss, thus presenting long-term value opportunities. Conversely, dense groupings of blazing orange/yellow dots typically mark parabolic run-ups and market tops, suggesting maximum short-term holder profit-taking pressure and alerting traders to potential cycle peaks.