Bitcoin Supply in Profit Above 70% Suggests Bull Run Intact
2min read On-chain data indicates that the percentage of Bitcoin supply held at an unrealized profit has remained above a crucial threshold during the current market cycle, suggesting that the Bitcoin bull run is still intact despite recent volatility. The “Supply in Profit” indicator, which tracks the proportion of Bitcoin supply held at a net gain, provides insights into market sentiment and potential price momentum.
According to a CryptoQuant analyst, the Supply in Profit metric has stayed above 70% throughout this cycle, a level that has historically marked the boundary between bull and bear markets. This indicator measures the proportion of tokens last transacted below the current Bitcoin price, meaning holders are sitting on gains. The analyst noted that during the last cycle, falling below the 70% level signaled the start of a bear market for Bitcoin. So far, Bitcoin has only approached but not breached this line, even during last year’s consolidation phase.
The metric also highlights an 80% level that Bitcoin has dipped below several times this cycle but is now close to retesting again. The analyst noted that the next target is to push the supply in profit back to 80% to signal strong bullish momentum. Historically, breaking above this line has coincided with the start of Bitcoin bull runs.
The Bitcoin price has seen some pullbacks, recently slipping to around $83,900, but the sustained Supply in Profit above 70% suggests that most holders remain optimistic. This resilience implies that the market has not capitulated, and long-term investors are holding firm. While the path to renewed highs may face resistance, the on-chain data paints a cautiously optimistic picture for Bitcoin’s ongoing bull cycle.
Traders and investors will closely monitor whether the Bitcoin Supply in Profit can climb above 80%, which could ignite stronger upward momentum and confirm the bull market’s continuation. Bitcoin commenced trading yesterday at $83,600. It continued the downtrend from the previous day, declining to find support at $83,100. With the coin now oversold, an uptrend was observed. However, the upward journey was short-lived as it faced rejection at $83,930. The rejection led to a death cross at 3:20 UTC, as the Bitcoin price slowly decreased to $83,260. It tried to ascend, but the correction again led it to the support level. However, in the next 2 hours, Bitcoin continued to test the resistance repeatedly until it broke out upward at noon.
Slight correction followed, with Bitcoin at $83,700 at 13:50. Around the same time, a massive golden cross formed as Bitcoin scaled the charts. It reached $85,350 by 17:00 UTC. At 17:30, a big death cross appeared, as Bitcoin plunged in the next half an hour, going to $83,200. With the market now in heavily oversold conditions, a trend reversal was called as Bitcoin formed an uptrend. But $84,650 posed stern resistance. Bitcoin has since consolidated around the $84,000 mark.
Bitcoin has had the support of intense buying pressure over the past few days. Yet, all its upward advances have plateaued around the $85,000 mark. If the Bitcoin price is to move above $85K again, it should stabilize around the current $84,000 mark and attempt an uptrend. However, as of the latest update, the market has already reached overbought conditions with a slight increase in Bitcoin prices. This means that further correction could occur. In that case, $83K will be a key holding level for Bitcoin.
