The steady maintenance of a high level of BTC supply in profit is a big clue to whether a bull cycle is underway or not. Looking back at past cycles, BTC supply in profit has mostly remained above 80%.
Of course, there have been moments when it fell below 80%(= red circles), but these were opportunities to buy the lows.
In the current bull cycle, it has remained above 80% for the most part. Recent summer pushed it below 80% shortly several times, but so far, those pushes were buying opportunities.
Written by SignalQuant