Bitcoin Profit Supply Falls, Raises Market Concerns

Bitcoin’s Profit Supply Index dipped below a crucial threshold in late November, signaling potential market volatility, though it has since rebounded to a safer level.

This fluctuation highlights investor sentiment’s fragility, impacting market stability and potential investment strategies, eliciting caution among analysts and traders alike.

Bitcoin Profit Supply Hits 67.6% Amid Market Uncertainty

Bitcoin’s profit supply percentage fell below the critical 65% mark for the first time between November 22 and 23. This drop is indicative of a possible bearish sentiment amongst traders.

The current rebound to 67.6% introduces a cautious optimism. It remains within a sensitive range of 65% to 70%, which analysts suggest could lead to either a recovery in confidence or trigger further panic if declines continue.

Axel Adler Jr, Bitcoin Researcher, – “Bitcoin’s supply in profit rebounded from its long-term mean of around 75%, and the price range of $75,000–$95,000 may represent a structural bottom aligned with the consolidation conditions we observe in Q3 2024.”

Bitcoin Trades at Over $92K, Shows Recovery Signs

Did you know? In their August 2024 analysis, Glassnode noted Bitcoin retesting the 75% mean at around $60,000, marking potential long-term structural supports in this cycle.

Based on CoinMarketCap data, Bitcoin currently trades at a price of $92,549.45, with a market cap reaching approximately $1.85 trillion. The dominant cryptocurrency captures 58.51% market dominance, while its 24-hour trading volume is just over $65.08 billion. The asset has experienced a 2.42% rise in the last 24 hours, despite declining by 18.87% over the past 90 days.

Insights from Coincu’s research team suggest potential outcomes for Bitcoin investors. Historical patterns and recent data hint at either cementing a position for long-term profit opportunities or anticipating further price drops due to market volatility.