Bitcoin's Supply in Profit indicator has been showing patterns that might endanger the current bull run. Currently, 85% of Bitcoin tokens are profitable, which is a sign of a bull market. However, dips into the 'transition zone' indicate potential bearish trends.
The Supply in Profit tracks the percentage of the circulating BTC that holds unrealized net profit. If a coin's last transferred price is below the current spot price, it counts as profitable. The recent recovery to $64,000 has put the metric back into the bull market zone after slipping under 80%.
The metric had a similar dip-and-recover pattern in July, raising concerns about the longevity of this bull phase. An overall downward trajectory has been noted, suggesting the potential for another drawdown, possibly leading to a new bear market.
Bitcoin's price recovery has seen a near 10% rise in the past week, currently standing at $63,900.
