Where Is Money Flow Saturation Point? Percent Supply in Profit In Crypto
Why does Bitcoin get dumped heavily every time it hits an ATH? Why does the market reverse when good news is everywhere? The answer lies in the Percent Supply in Profit metric. This is the thermometer of market greed, indicating when money flow has reached a saturation point and needs to release pressure.
🔸 Percent Supply in Profit measures the percentage of circulating Bitcoin currently valued higher than the price at which it was last moved.
When this metric exceeds 95%, it means almost everyone holding Bitcoin is in profit.
👉 The incentive for Profit taking becomes massive. Correction risk is very high.
When this metric drops below 50%, it means more than half the market is underwater.
👉Weak hands have capitulated. Selling pressure is exhausted. This is often a long term Generational Bottom for accumulation.
🔸 History shows that whenever Bitcoin breaks its ATH, this metric hits 99 to 100%.
However, the market rarely goes up in a straight line forever.
After hitting 99%, the price tends to correct sharply to shake out short term profit takers and rotate investors, before establishing a new, higher price floor.
🔹 Never go Allin when everyone is bragging about profits. That is when Smart Money is quietly distributing. Be patient and wait for a crash.
Is your portfolio currently green or red? If both you and all your friends are in profit, do you think the market is about to shake out to take that money back?
News is for reference, not investment advice. Please read carefully before making a decision.
