Bitcoin Cycle-Bottom Signal Flashes as On-Chain Profit/Loss Lines Cross, Analyst Says

BitcoinWorld Bitcoin Cycle-Bottom Signal Flashes as On-Chain Profit/Loss Lines Cross, Analyst Says An analyst is pointing to a recurring on-chain pattern that has historically marked the end of Bitcoin’s down cycles, suggesting the market may be on the verge of a trend reversal.

Crypto Dan, a pseudonymous analyst, noted that the share of Bitcoin supply in profit and the share in loss—based on acquisition prices recorded on the blockchain—are showing a crossover that has preceded previous bull markets.

Understanding the On-Chain Profit/Loss Crossover Bitcoin’s on-chain data tracks every coin’s last movement, providing a proxy for its acquisition price.

When the market price rises above that price, the coin is considered “in profit”; when it falls below, it is “in loss.” Analysts monitor the ratio of supply in profit versus loss to gauge market sentiment and cycle positioning.