The "Supply in Profit (%)" shows the percentage of BTC currently in profit. This metric can help determine whether we are transitioning from a bottom phase to a bullish market.

🟩 Major Bull Market, Euphoria Phase: >80% 🟨 Transition Phase: 55% - 80% 🟥 Bear Market, Bottom Discovery Phase: ≤55%

Although the indicator is still around 85%, it briefly dipped below 75% during the corrections in July and August, signaling a possible entry into the Transition Phase🔴. A drop below 80% must not necessarily mean the market has shifted from a bull market to a bear market. However, it’s crucial to remember that the indicator has shown a downward momentum over the past four months, and BTC’s recovery has not surpassed its March peak.

If the sideways trend continues and the Supply in Profit remains below 80%, we should be prepared for the possibility of a market downturn. It is important to monitor whether the indicator can shift from a negative to a positive slope.

Written by Yonsei_dent