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.
đ© Major Bull Market, Euphoria Phase: >80% đš Transition Phase: 55% - 80% đ„ Bear Market, Bottom Discovery Phase: â€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 PhaseđŽ. A drop below 80% must not necessarily mean the market has shifted from a bull market to a bear market. However, itâs crucial to remember that the indicator has shown a downward momentum over the past four months, and BTCâs 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