Bitcoin's Supply in Profit Ratio and Market Sentiment

Bitcoin’s current price is near a significant psychological threshold, closely tied to the "Supply in Profit" metric. This metric indicates that market optimism increases when a substantial portion of investors are in profit. Presently, the supply in profit ratio is retesting this critical level. If this level holds, it could support upward movements in the market, potentially pushing Bitcoin’s price higher.

Historical Data and Market Trends

Historical data from previous bull markets, such as in 2016 and 2020, shows that Bitcoin maintained a strong uptrend when its price remained within this psychological threshold. Surpassing this level could lead to similar upward price movements.

Low Likelihood of Decline

Based on current price movements and the supply in profit metric, the probability of a significant decline remains low as long as Bitcoin holds this level. If the price falls below this threshold, market sentiment could turn pessimistic, leading to price pullbacks. Conversely, exceeding this level could fuel further optimism and increase the chances of reaching new price highs.

Conclusion

Bitcoin is once again testing a crucial psychological level, and breaking above this zone could pave the way for a strong upward movement.