Bitcoin’s Supply in Profit remains above 70%, indicating potential bullishness. The metric assesses unrealized profits among circulating Bitcoin by comparing purchase prices to current market prices. A significant threshold at 70% has been intact, while the 80% level serves as a key resistance; breaching these points could signify market trends. Bitcoin’s current price is $83,900 after recent corrections.
Recent analysis indicates that Bitcoin’s Supply in Profit, currently above 70%, has yet to drop below a significant threshold during the ongoing cycle, suggesting a potentially bullish outlook for BTC. The Supply in Profit metric gauges the proportion of Bitcoin in circulation that is held at an unrealized profit, highlighting investor gains.
This metric assesses transaction histories to identify the original purchase price of each Bitcoin, determining if the current market price exceeds that figure. If a coin’s acquisition cost is lower than its market price, it is classified as part of the Supply in Profit. Conversely, the Supply in Loss metric captures the tokens held at a loss and can be calculated by subtracting the Supply in Profit from the total supply percentage.
The accompanying chart demonstrates trends in the Supply in Profit over the past few years, illustrating that it previously reached 100% when Bitcoin’s price peaked. However, following market corrections, the indicator has seen a decline. Notably, a critical level at 70%, highlighted in orange on the chart, marks a threshold below which past bear markets began.
Currently, Bitcoin remains above this pivotal level, having come close to it during last year’s market consolidation. The 80% threshold, marked in yellow, is another significant point that has been breached multiple times in this cycle; despite recent corrections, the Supply in Profit is approaching a retest of this line. Historical patterns suggest that a return above this indicator can signal heightened bullish momentum for Bitcoin.
Currently, Bitcoin’s price has retracted slightly to $83,900 after a recent recovery, reflecting typical volatility in cryptocurrency markets as it navigates these critical supply metrics.
