Bitcoin Supply in Loss Indicates Early Bear Market Conditions
- The supply-in-loss metric for Bitcoin has risen to approximately 44%.
- This increase occurs despite Bitcoin trading above its realized price.
- Historically, elevated supply in loss signals growing downside pressure and often appears near bear market lows.
- CryptoQuant analyst Woo Minkyu suggests the current data indicates a structural market weakening.
- Minkyu notes that similar conditions have previously marked the onset of bear markets rather than bull-market corrections.
Trading Analysis
Trading Signal: BEARISH (Score: -8)
Current on-chain data suggests a transition into a bear market phase with unresolved downside risk.
Catalysts & Timeline:
• Near-term: No specific events mentioned
• Upcoming: No confirmed catalysts provided
Risk Assessment:
• Elevated supply in loss increases downside pressure
Historical Context:
Previous cycles show true bottoms formed after further expansion of supply in loss and deeper price compression.
The rise in Bitcoin’s supply-in-loss metric to around 44% suggests a potential transition into a bear market phase, as indicated by CryptoQuant analyst Woo Minkyu. This aligns with historical patterns where elevated levels signaled increased downside pressure.
Source (3.2)https://cryptobriefing.com/bitcoin-bear-market-signals/?rand=59535
