Then, days of steep downward movementBitcoin’s price appears to be finding a stable anchor in the region of $60,000 Recent on-chain data indicates that Bitcoin’s price might not remain down long. A bullish turn is expected.
BTC is already at a price low?
Ali Martinez posted a blog on X’s platform on June 7. revealed This could mean that Bitcoin’s price has just hit a bottom. This assessment is based upon changes to the Bitcoin Supply in Loss (BTC) metric. It measures how much BTC was moved last at a higher price than the current market.
This on chain metric gives insight as to how investors feel (or are underwater) while holding their Bitcoin with an unrealized profit. The Supply In Loss (SIL) indicator is nearing unprecedented levels and a sign of systemic fears.
Martinez pointed out that in the past, the cryptocurrency’s flagship formed significant cycle bottoms when over 10 million BTC was held at a profit. Glassnode statistics, highlighted by Martinez, show that Bitcoin has crossed this threshold. 10.46 millions coins (more then half of the current supply) are underwater.
In the graph above, you can see that Bitcoin’s price experienced a bullish turn in 2018, when supply-in-loss reached this threshold of 10,000,000. A similar pattern could be seen for BTC’s price when its Supply In Loss climbed to this mark around 2022.
Martinez explained:
This is a very important sign because the selling pressure usually begins to diminish as investors become less willing to accept losses. The probability that a bottom will form increases.
There is a very high probability that, based on the historical context and trends, a price bottom is forming BTC is currently trading at a level that makes it attractive. It is important to note that Bitcoin’s circulating supply has been significantly reduced in each period (approximately 17,4 million at the end of 2018, and 19,2 millions by 2022).
A lower supply of BTC could lead to the Supply In Loss moving slightly upwards, indicating that BTC’s price may continue to fall. This was evident in 2015 (when the circulating supply was much lower), when the Supply In Loss didn’t reach the 10 million threshold before a bullish reversal.
Bitcoin Price at a Glance
BTC’s price is around $62,746, which represents a 2,5% increase in the last 24 hours.
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Source: www.newsbtc.com
