BTC On-Chain Indicator Hits Bottom! LTH/STH Ratio Returns to Starting Point of Bull Market

According to CryptoChan analyst, the ratio of Bitcoin’s average price of long-term holders (LTH) to short-term holders (STH) (LTH/STH value indicator) has now dropped to 0.282, which was an important signal for the start of a bull market in history.

On May 6, 2017, after the indicator reached 0.282, the price of Bitcoin began to rise from around $1,500 and eventually reached almost $20,000 by the end of the year.

On December 24, 2020, the indicator fell again to 0.281, and then Bitcoin began a super bull market, where the price broke through from $20,000 to $60,000;

The indicator has now dropped back to 0.282 for the third time, and the activation of this key area is very similar to the start of the previous bull market.

The upper part of the chart shows the price trend of Bitcoin, as well as the ratio of the "average chip purchase price of long-term holders" to the "average chip purchase price of short-term holders". Current data indicates that the Bitcoin market is repeating the chip distribution before the start of the two previous bull markets, which may indicate an imminent price change.