The amount of Bitcoin held by long-term holders refers to the total quantity of Bitcoin controlled by long-term holders (LTH).
These holders are typically defined as investors who have held their Bitcoin for an extended period (e.g., over 6 months or 155 days, depending on the analysis tool or platform), favoring holding through market fluctuations rather than frequent trading.
How It’s defined and calculated?
Long-Term Holders (LTH): Identified using on-chain data by tracking Bitcoin’s UTXOs and analyzing the last time each coin moved.
Coins unmoved for longer than a set threshold (e.g., 155 days) are classified as belonging to long-term holders.
Quantity Calculation: The total sum of all Bitcoin that hasn’t moved beyond the specified timeframe, expressed in BTC or as a percentage of the circulating supply.
Market Confidence Indicator: An increase in Bitcoin held by long-term holders often reflects confidence in Bitcoin’s future value, showing reluctance to sell at current prices.
Sell Pressure Analysis: A decrease suggests long-term holders are selling, often linked to market tops or profit-taking.
Cycle Signals: In bear markets, long-term holders tend to accumulate; at bull market peaks, they may reduce holdings, offering clues about market trends.
Relation to Other Indicators:
MVRV Ratio: High LTH holdings with a low MVRV may indicate an undervalued market.
RHODL Ratio: A drop in LTH holdings can increase the short-term holder ratio, potentially pushing RHODL into the red zone.
How to use It?
Rising LTH-held Bitcoin during price dips may signal a buying opportunity;
a decline at high prices could warn of selling or caution.