LTH Distribution Phase refers to a period when long-term holders (LTHs) of a cryptocurrency begin selling their assets into the market. This phase typically occurs after a significant price appreciation, as LTHs realize profits accumulated over extended holding periods. It is characterized by an increase in the movement of older coins on-chain, indicating a transfer of supply from strong hands to newer, often less experienced buyers. Such distribution can precede a market top or a period of price consolidation.
Context
Crypto news often highlights the LTH Distribution Phase as a crucial signal for identifying potential market cycle tops. The discussion involves analyzing on-chain metrics like Coin Days Destroyed or Spent Output Profit Ratio to confirm this behavior. Observing this phase provides important context for understanding the supply dynamics of a digital asset and anticipating shifts in market momentum.
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