Analyst Ali Martinez issues a warning about a potential decrease in Bitcoin based on the Supply in Profit metric. This may significantly impact the market.
What is Supply in Profit
Glassnode’s Supply in Profit metric tracks the amount of Bitcoin that was last moved at a price lower than the current market price. When a large percentage of coins are in profit, it can foreshadow a correction as holders become tempted to take gains.
Market Status Analysis
As markets opened, Bitcoin traded around $113,000, a few thousand dollars below the technical level of $118,000 identified by analysts as crucial support. Analysts indicated $109,000 as immediate support, and breaking below that may amplify bearish pressure.
Future Outlook for Bitcoin
Traders are currently debating two scenarios: either Bitcoin cools toward the $109,000 area, allowing buying to resume, or if profit supply continues to decline, the market may face deeper drawdowns, forcing long holders to reduce positions. This pattern has been observed in past cycles when unrealized profit shares fell rapidly.
With growing attention to shifts in supply profit and ETF flows, traders should closely monitor these indicators to better understand potential changes in Bitcoin price dynamics.
