MARKET ALERT: Bitcoin Enters Historic Pain Zone A Bottom Signal May Be Forming
Bitcoin just triggered one of the most important on-chain signals traders watch during market cycles and history says moments like this don’t happen quietly.
$BTC supply in loss has officially crossed 10 MILLION coins, marking the fourth-highest reading ever recorded.
This means a massive portion of holders are now sitting below their entry price, reflecting intense recent selling pressure and shaken short-term confidence.
Even more revealing, around 70,000 BTC purchased between February 6 and today have already slipped into loss.
Fast-moving market volatility has pushed newer buyers underwater almost instantly a classic sign of late-stage market stress.
But here’s where things get interesting.
Bitcoin’s circulating supply is about to hit 20 million BTC next week, a historic milestone for the network.
If current conditions remain unchanged, nearly half of all Bitcoin in existence roughly 50% will be held at a loss.
And historically… that level of pain has often marked opportunity.
Previous market cycles show that when loss supply spikes to extreme levels, it signals large-scale “capital destruction.”
Weak hands exit, leverage collapses, panic peaks and long-term investors quietly begin absorbing supply. These phases have repeatedly appeared near major bear market bottoms rather than the start of deeper crashes.
In crypto, maximum fear often arrives right before momentum shifts.
While price action may still look uncertain, on-chain data suggests the market is undergoing a deep reset beneath the surface.
The question now isn’t whether volatility continues but whether this pressure is building the foundation for Bitcoin’s next major move.
The crowd sees losses.
Smart money watches exhaustion.
And Bitcoin history shows reversals are born in moments exactly like this.
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