Bitcoin's Bottom Signals Strengthen as Sellers Retain Upper Hand

Bitcoin has been trading within a narrow range of $62,000 to $65,000 over the past week, sparking questions about whether it's found its bottom. According to on-chain data from CryptoQuant, a possible recovery setup is emerging, with the Supply in Profit metric tracking the share of Bitcoin's circulating supply held at a profit.

At press time, roughly 11.44 million BTC sat in profit, placing the metric within the lower market band between Bottom Discovery and Liquidity Accumulation. Previous periods in this range often preceded major recoveries, but the metric alone cannot confirm that Bitcoin has formed a cycle bottom.

The setup suggests that downside risk may have moderated after Bitcoin's recent correction, but it's unclear whether this will lead to a sustained recovery. Short-term holders are also being watched for signs of supporting a Bitcoin rebound, with the Short-Term Holder Realized Price chart showing buyers from one week to one month with those from one to three months.

The lines appear to be converging, but a bullish crossover would require the orange 1W-1M line to move above the green 1M-3M line. This would indicate that recent buyers entered at progressively higher prices, supporting a stronger demand recovery.