This indicator tracks the percentage of Bitcoin supply currently in profit versus loss — one of the most reliable tools for identifying market bottoms.
Historically, true bottoms form when the percentage of supply in loss spikes significantly, reflecting a state of market capitulation where investors sell under pressure.
What we see now:
- Supply in loss is rising but not at historical extremes
- The market hasn’t reached full panic yet
- A significant portion of holders are still in profit
What does this mean?
It suggests that the market may not have reached its final bottom, and further downside or time may be needed before a strong bottom forms.
Why this phase matters
Bottoms are not formed by expectations…
They are formed by maximum pain
Conclusion
Current data does not confirm a definitive bottom yet, indicating that the market may still need further stress before a true capitulation occurs.