Bitcoin On-Chain Analysis: Supply in Profit Holds Support; Danger of BTC Capitulation?
Categories: Bitcoin US
The Supply in Profit indicator measures what percentage of BTC supply in circulation is currently recording a profit. In other words, the indicator determines the percentage of existing coins whose price was lower than the current price at the time of the last move.While its holding at the 62.5% area as support, it’s possible that this could also become a signal for the bullish trend reversal. The risk of capitulation is also outlined in the Long-Term Holder Capitulation Signal indicator. Supply in Profit indicator defends support As of 2022, the Supply in Profit indicator has not fallen below the 62.5% level (red line). This year, it has bounced off the key support area three times, on Jan. 22, Feb. 21, and March 13, corresponding with local BTC price lows at $34,000, $36,350, and $37,555.Currently, the indicator shows 67.1% and is in a short-term uptrend, as is Bitcoin’s price. Potential market capitulation Upon further analysis, the indicator illustrates that the risk of capitulation in the Bitcoin market is still real.The Long-Term Holder Capitulation Signal shows periods where the BTC price drop was impacted by sell-offs from long-term holders.Throughout Bitcoin’s history, this indicator has been below the 0 level four times, demonstrating a deepening bear market, which served as advantageous opportunities to buy Bitcoin.