Bitcoin Profit Cycle Turns Negative for First Time Since 2023: CryptoQuant

💡 DMK Insight

Bitcoin’s drop below $90,000 is a big deal for traders: on-chain realized profits are now negative, echoing pre-bear market conditions. This shift indicates that many investors are sitting on losses, which could lead to increased selling pressure as traders look to cut losses. Historically, when realized profits turn negative, it often signals a lack of confidence in the market, potentially triggering further declines. Traders should keep an eye on key support levels; if Bitcoin can’t reclaim $90,000 soon, we might see a cascade effect where more investors panic and sell. On the flip side, this could also create a buying opportunity for those looking to accumulate at lower prices. Watch for any bullish divergence on the daily charts, as that could signal a reversal. Keep your eyes peeled for volume spikes or changes in sentiment, as these could provide clues for the next move.