The Long-Term Holder Spending Binary Indicator displays the activity of long-term BTC holders and their impact on market movements. This indicator helps to understand the behavior of long-term investors and their readiness to sell their assets.

Key components of the indicator 🧩

  1. BTC: Long-Term Holder Cost Basis (blue line): This is the average cost of purchasing BTC by long-term holders.

  2. BTC: Long-Term Holder Supply (orange line): The volume of BTC held by long-term holders.

  3. LTH-Spending Binary Indicator (yellow line): Long-term holder spending indicator, smoothed by 7 days.

  4. BTC: Price (black line): Current price of Bitcoin.

  5. Peak Spending (green line) and Minimal Spending (red line): Peak and minimum flow rates.

    $BTC

Data Analysis 🔍

Expenses of long-term holders 🕵️‍♂️

  • Significant Spending Period: In the 5.5 month period, 933k BTC was spent, indicating significant activity from long-term holders who decided to sell their holdings. This may be due to profit taking or a reaction to market conditions.

  • Decline in expenses: After this period, there is a decrease in expenses, which may indicate stabilization and retention of assets.

Price dynamics 💹

  • Rise and Correction: The price of Bitcoin rose significantly, peaking around 80K, after which a correction occurred. The price adjusted to reflect the high level of spending by long-term holders.

  • Market Impact: Active selling by long-term holders often leads to market volatility as large volumes of selling can cause panic among other market participants.

Behavior of long-term holders 👥

  • Accumulation Periods: When the orange line (LTH Supply) rises, it indicates accumulation periods where long-term holders increase their BTC holdings.

  • Selling Periods: Periods when the blue line (Cost Basis) and orange line (LTH Supply) are falling indicate that long-term holders are actively selling their assets.

    $BTC

Conclusion 📝

The BTC Long Term Holder Binary Expense Indicator is an important tool for analyzing the behavior of long-term investors. Understanding their activity can help predict market movements and make informed investment decisions.

  • Current situation: The graph shows that after a period of active sales, stabilization is observed. If spending by long-term holders continues to decline, it could indicate a possible market recovery.

  • Future Trends: Investors should monitor changes in spending by long-term holders to predict possible major price movements in BTC.