Bitcoin [BTC] holders anticipating a bear market floor should read this

ambcrypto.com:

Bitcoin [BTC] prices have been unusually volatile in recent weeks. This can be considered in contrast with the broader financial markets (equities, credit, and currency markets)  that have been significantly volatile within the same period, as per Glassnode’s latest report. 

While there were speculations that BTC investors sought to establish a bear market floor, Glassnode, considered some on-chain metrics to drive home this point further. 

Firstly, Glassnode considered BTC’s Percent Supply in Profit. According to it, tracking the declining supply in profit was a useful tool for identifying “points of elevated financial stress, which have exhausted sellers in previous cycles.”

In previous bear markets, BTC’s percent supply in profit during the bottom formation stages ranged from 40% to 42%. However, in the current bear market, Glassnode found that 50% of BTC’s circulating supply remained as unrealized profit. This, according to the blockchain analytics platform, indicated that, 

“Supply profitability remains elevated in relation to historical analogues. This insinuates a full detox in profitability may not have occurred yet.”

Source: Glassnode

Furthermore, Glassnode considered BTC’s relatively unrealized profit metric. Taking a trip down memory lane, the analytics firm discovered that each time the aggregated Unrealized Profit compressed to circa 30% of BTC’s market capitalization, sellers that initially ravaged the market ended up exhausted. In the current market, the price decline since the all-time high of November 2021 caused the metric to decline to 0.37. 

Glassnode also looked further at BTC’s Net Unrealized Profit/Loss metric (NUPL). This was used to assess the difference between unrealized profit and loss of the network