On-chain data shows that a relatively high percentage of Bitcoin supply remains in profit, while the share in loss has not yet reached the extreme “capitulation” levels typically seen at market bottoms.
Historically, peaks in loss supply—where a large portion of holders are underwater—have aligned with periods of maximum fear and often marked long-term buying opportunities.
Current metrics suggest the market may require further downside pressure before reaching such conditions, as a significant portion of holders are still in profit.
However, no single indicator can definitively call a bottom. Broader factors such as global liquidity, monetary policy, and institutional flows play a critical role.
As a result, many analysts favor a dollar-cost averaging (DCA) strategy during uncertain phases like this, rather than attempting to time the exact bottom.