Bitcoin Supply in Loss Indicator Suggests Potential Bear Market Onset
- The Bitcoin Supply in Loss indicator has started to rise, indicating an increase in the percentage of BTC held at a net unrealized loss.
- Historically, a rising trend in this indicator has preceded bearish market phases, affecting both short-term and long-term holders.
- The recent upward shift follows Bitcoin’s all-time high beyond $126,000 and subsequent bearish momentum.
- Currently, Bitcoin is trading around $89,000, showing a slight increase of over 1% in the last day.
The rise in the Bitcoin Supply in Loss metric suggests potential early signs of a bear market phase, as it historically aligns with market downturns when losses extend from short-term to long-term holders. This recent trend follows Bitcoin’s peak and subsequent decline.
With Bitcoin trading at $89,000 after its all-time high above $126,000, the change in the Supply in Loss direction could be significant if past patterns hold true. (Source)
