On-chain data reveals a significant shift in Bitcoin’s market structure. Only 59% of the total Bitcoin supply is currently held at a profit, a level historically associated with bear market conditions. Despite this, the price remains stable above $71,000, with exchange data indicating limited selling pressure from investors. Analysts suggest these conditions may be forming a new accumulation phase for the cryptocurrency.
On-chain analysis shows a notable decline in Bitcoin’s profitability. CryptoQuant analyst Darkfost said only about 59% of the supply remains in profit, nearing past bear market levels. This means nearly half of all Bitcoin is now held at a loss.
Darkfost noted the 50% profit supply level has been an important historical milestone for finding a market bottom. Although the current level exceeds this point, it continues to trend downward.
Separate data from CryptoQuant analyst Amr Taha shows limited selling pressure. He stated that short-term investor realized profit and loss pressures had decreased instead of increasing.
Amr Taha pointed to a significant decrease in the 7-day standard deviation between late March and early April. This indicates reduced volatility related to profit-taking by active traders.
The combined data suggests a balance in the current market. Fast-money players are taking profits as the price rises, but long-term holders are maintaining their positions.
This activity provides a measure of price stability, with Bitcoin holding above $71,000. The structure points to a potential transition phase where accumulation may dominate distribution.
