Exciting Phases in Bitcoin Are Just Around the Corner: Approaching Historical Levels! - Coin Bulletin

The approaching of the profit supply rate in Bitcoin to the 90% threshold increases the likelihood of triggering euphoric phases seen in past periods.

One of the important metrics used to measure the performance of the flagship cryptocurrency Bitcoin is the "profit supply ratio," which has recently reached a remarkable level. According to an analysis shared by CryptoQuant, the profit supply ratio of Bitcoin has risen above 85%, approaching a historically significant threshold of 90%.

The increase in supply in profit is a positive indicator

The fact that a large portion of Bitcoin supply is in profit is not actually a negative situation; on the contrary, it is considered a very positive indicator. According to an assessment by the analyst named Darkfost, the increase in the supply ratio in profit often emerges as a factor that fuels bull phases. This ratio, which declined to levels of 75% during the recent correction movement, is evaluated as a critical threshold that includes the global average.

A drop below this level could trigger further profit realization or even lead to a capitulation event. Additionally, in past cycles, the points at which the supply of profits was at its lowest have typically occurred in the 45-50% range, coinciding with deep bear market conditions.

Historical data is warning

When looking at historical data, the supply ratio in profit has consistently triggered euphoric phases when it exceeded 90%, and we are currently approaching this level. However, there are also warnings that these euphoric phases can be short-lived and often result in short to medium-term corrections.