Analysis: One indicator suggests Bitcoin may be approaching a cycle bottom again, a prediction that has historically been accurate multiple times.

PANews reported on February 4th that, according to CoinDesk analysis, an on-chain metric known as the "Bitcoin Profit/Loss Supply" suggests the market may be approaching a historic bottom. This metric measures the relationship between the overall market holding cost and price by comparing the number of Bitcoins in a profitable and loss-making state. Glassnode data shows that approximately 11.1 million Bitcoins are currently profitable, while 8.9 million are losing money. Historically, when these two figures converge, it often corresponds to a market cycle bottom. For example, the bottoms in 2022 (approximately $15,000), 2020 (below $3,000), 2019 (approximately $3,300), and 2015 (slightly above $200) all occurred after this signal appeared.

Analysis suggests that if these two factors converge at the current cost base, it could mean that the price of Bitcoin will approach $60,000. This indicator, by tracking changes in the amount of profitable and losing coins in the circulating supply, reflects overall market holding pressure and investor sentiment, and its convergence point is considered a reliable signal for identifying market capitulation and long-term opportunities.