Why does Bitcoin drop significantly every time it reaches ATH? Why does the market change direction when good news is everywhere? The answer lies in the metric of percentage supply in profit. It is a thermometer of market greed that indicates when cash flows have reached the saturation point and need to relieve pressure.
🔸 The profit supply percentage measures the percentage of circulating Bitcoin that is currently valued above the price at which it last moved.
When this metric exceeds 95%, it means that almost everyone holding Bitcoin is in profit.
👉 The incentive to make a profit becomes huge. The risk of a correction is very high.
When this indicator drops below 50%, it means that more than half of the market is in losses.
👉 Weak hands have capitulated. The selling pressure has been exhausted. This often marks a long-term accumulation bottom.
🔸 History shows that when Bitcoin breaks its ATH, this metric reaches 99 to 100%.
However, the market rarely goes up in a straight line forever.
After reaching 99%, the price typically corrects sharply to shake out short-term profit-takers and rotate investors before establishing a new, higher price level.
🔹 Never go all in when everyone is boasting about profits. That’s when Smart Money quietly distributes. Be patient and wait for the crash.
Is your portfolio currently green or red? If you and all your friends are in profit, do you think the market is about to start coming out to take that money back?
News is for informational purposes only and not investment advice. Please read carefully before making decisions.
