Bitcoin Supply in Profit Ratio Rebounds to 57.5%, But Still Not Enough

CryptoQuant reported that Bitcoin's supply in profit ratio has rebounded to 57.5% as of July 22, up from a low of 46.2% on June 30.

This marks a significant improvement from the previous month, but on-chain analysts say it's still too early to confirm a broader bullish reversal.

The report noted that two conditions must be met for a bear market to confirm a true bottom: the 30-day average of long-term holder spent output profit ratio (LTH SOPR) must stay above 1 and the supply in profit ratio must rise above 64%.

However, the 30-day moving average of LTH SOPR is currently below 1, having remained there for more than 50 days, indicating that a bear market reversal has not yet been confirmed.