Bitcoin Supply In Profit Hits Historical Threshold – Echoing Past Patterns

Bitcoin is currently consolidating within a narrow range, trading below the $115,000 level while holding key support above $110,000. This consolidation reflects the ongoing tug-of-war between bulls and bears, as volatility continues to push the market in both ￰0￱ the temporary stability, recent price action shows that selling pressure has gained a slight edge, leaving traders cautious about the next major ￰1￱ Reading: Bitcoin Taker Buy/Sell Ratio Plunges To Lowest Since 2018: Strong Sell Signal Flashes Top analyst Darkfost has highlighted an important on-chain development that adds context to this ￰2￱ to his data, the percentage of Bitcoin supply in profit has now reached a historically critical ￰3￱ metric, which tracks how much of the circulating supply is currently above its cost basis, has long been a key guidepost for identifying major phases of the ￰4￱ a large share of supply in profit is not inherently bearish, history shows that such levels often coincide with pivotal turning points in Bitcoin’s market ￰5￱ BTC consolidating in this crucial zone and profit supply peaking, the market stands at a delicate ￰6￱ Bitcoin can reclaim momentum above $115K or faces a deeper correction may depend on how investors react to this latest ￰7￱ Supply In Profit Reaches Critical Cycle Zone According to top analyst Darkfost, the current level of Bitcoin supply in profit carries far more nuance than many ￰8￱ some investors interpret a large share of coins in profit as a bearish warning, Darkfost emphasizes that it is, in fact, a necessary component of Bitcoin’s cyclical ￰9￱ to what many might think, he explains, “a high percentage of supply in profit is what fuels the euphoric waves that drive the market forward.” Looking at history, the long-term average of supply in profit sits at roughly 75%, defined by a bell curve of Bitcoin’s performance since ￰10￱ other words, across cycles, three-quarters of supply tends to sit in profit at any given ￰11￱ this ratio climbs above 90%, it usually signals a period of strong bullish momentum — the kind often seen in major bull ￰12￱ elevated levels create the psychological backdrop for rallies to extend, as confidence builds and capital flows into the market.

However, Darkfost also warns that this metric can signal turning ￰13￱ the percentage of supply in profit drops back below 90%, the market often transitions into corrective ￰14￱ can be short-lived pullbacks or prolonged downturns, but historically, the break beneath that line has marked the shift away from euphoria. Bitcoin’s position near this threshold highlights the ￰15￱ supply in profit remains elevated, the market could continue its upward ￰16￱ not, the risk of a deeper correction grows, reinforcing the importance of this metric as a cycle-defining ￰17￱ Reading: Bitcoin MVRV Compression Signals Pause – Market Digests Recent Volatility Bulls Struggle To Regain Momentum After Pullback Bitcoin is trading near $112,900 after a rebound from lows around $110,800, yet the chart shows that momentum remains ￰18￱ the rejection at $123,000 earlier this month, BTC entered a corrective phase, slipping below both the 50-day and 100-day moving averages, which now act as resistance near $115,700–$116,600.

This area stands out as the immediate barrier for bulls to reclaim if they want to shift the trend back in their ￰19￱ 200-day moving average at $111,600 is currently providing a layer of support, helping BTC stabilize after recent ￰20￱ this zone will be crucial in preventing a deeper retrace toward the $108,000 ￰21￱ buyers can defend this level while building momentum, the market could stage a relief rally back toward the mid-$115K ￰22￱ Reading: Bitcoin STH Cost Basis Aligns With Critical Indicator: Support Builds Around $100K Level However, failure to reclaim the moving averages would leave BTC vulnerable to extended downside ￰23￱ inability to hold above $115K has already signaled fading strength, and without a decisive breakout, sellers could regain ￰24￱ now, Bitcoin sits in a consolidation phase, caught between critical support and resistance, with the next move likely to determine whether the market stabilizes or slides ￰25￱ image from Dall-E, chart from TradingView