Profit/Loss Metrics Suggest Bull Market Transition for Bitcoin

Bitcoin's price recovery has led to a significant shift in profit/loss metrics, suggesting that a bull market transition may be underway. According to data from CryptoQuant, the ratio of Bitcoin supply in profit versus loss has crisscrossed over the past ten days, similar to what happened towards the end of previous bear markets.

This divergence between profit and loss has historically been a signal for the start of a bull market. The 90-day moving average of the Bitcoin realized profit/loss metric also made a turnaround following the recent rally, indicating that over a three-month period, realized profits exceeded realized losses.

The net unrealized loss metric shows unrealized losses as a share of market capitalization, and it has fallen significantly in recent days. Market stress is now at its lowest level since June, according to analyst Axel Adler Jr.