Bitcoin's Bullish On-Chain Signal Caused 200% Price Rally Last Time



The newest on-chain observation shows that Bitcoin traders' realized losses have reached a threshold that has impacted the coin's movement many times in previous years. Does Bitcoin's price bottom out?


Famous crypto researcher Ali Martinez noted on X that Bitcoin traders have been losing more in recent weeks. This on-chain reveal uses the CryptoQuant Profit/Loss Margin statistic, which aggregates Bitcoin transaction earnings and losses.




Bitcoin investors' profitability is measured by the Profit/Loss Margin. Positive metric values indicate more profitable BTC sales. However, a negative Profit/Loss Margin shows more Bitcoin sales at a loss.




The Profit/Loss Margin has just gone below -12, yet positive price activity has followed. Martinez noted that the past two occasions the measure dipped below this level, price rises of 104% and 193% followed.


If this historical trend is any indication, Bitcoin may soon enjoy bullish activity. Significant market losses may indicate the end of a negative cycle and the start of a positive one.


Bitcoin Price Rising? Important Levels to Monitor
Several price zones should be watched if Bitcoin follows the historical trend and rallies. Martinez said the top cryptocurrency has substantial resistance between $61,340 and $64,620.


This discovery is based on Bitcoin investors' cost basis and BTC supply distribution across price ranges. The size of the dots in the chart below shows resistance and support strength and BTC bought in each price zone.


Bitcoin is now at $59,467, up 2.7% in 24 hours. CoinGecko shows the flagship cryptocurrency up 2% in the previous week.

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