Relative Long/Short-Term Holder Supply

Relative Long/Short-Term Holder Supply is used to track the ratio of the total holdings of BTC held for more than 155 days to the total holdings of BTC held for ≤ 155 days.

When the SMA parameter is set to 180, it can be observed that the value of this indicator is often negatively correlated with the price trend of BTC.

The reason for the above phenomenon is that when the price rises, long-term holders continue to distribute high-priced chips to short-term holders, resulting in a decrease in the value of this indicator; When the price falls, long-term holders continue to collect chips in the sell-off of short-term holders, causing the value of this indicator to rise.

This indicator can also be used as an auxiliary indicator for judging the top range. That is, other indicators have been used to judge that the market is close to the top range, and at the same time, when the price continues to hit new highs, the value of the indicator has not reached new lows, it shows that the buying has been unable to catch the selling, and the rise is unsustainable.