adminIn recent developments, bitcoin price struggles persist as the premier cryptocurrency is yet to break above the key $70,000 resistance zone, suggesting the market remains at risk of a deeper correction. Notably, popular market analyst Yonsei_dent has shared an observation that backs these bearish investors’ expectations. Bitcoin Supply In Profit Metric Shows Potential 75% Drawdown In a Quicktake post on CryptoQuant, Yonsei_dent has identified a potential price bottom of the present market cycle, considering the meltdown in recent months. Since October, the leading cryptocurrency has lost over 45% of its market value, with prices dropping as low as $60,000 from an all-time high of $126,000. Using the Supply In Profit on-chain indicator, Yonsei_dent maps out the possible extent of Bitcoin’s price decline when in the bottom zone, based on historical cycle drawdown periods. For context, the Supply in Profit measures the portion of the total circulating Bitcoin whose current market price is higher than the price at which those coins last moved. It’s an important cycle indicator, as the Supply in Profit approaches extreme highs when near cycle tops, and compresses sharply when near cycle lows. Yonsei_dent explains that the duration of Bitcoin Supply in Profit in the bottom zone in 2022 was six months. During this market cycle, Bitcoin had initially hit an all-time high of $69,000 before crashing by 77% to around $15,500. According to the market analyst, if the same length of the bottom phase was placed on the current price chart, it represents a 70%-75% drawdown price projection for the present market cycle. In this case, Bitcoin is expected to find a price low within a range of $31,500 – $38,000, suggesting a further potential 41%-51% decline from the current market prices. Bitcoin Price Overview At the time of writing, Bitcoin trades at $63,553 following a 5.84% loss in the last 24 hours. Meanwhile, its daily trading volume is up by a minor 0.54% and valued at $40.04 billion. The premier cryptocurrency also reports a negative performance on its weekly and monthly charts, with respective losses of 6.21% and 27.11%. Unless the market bulls convincingly reclaim the long standing $70k resistance, market sentiment is likely to remain fragile and prices vulnerable to additional downside or prolonged consolidation in the near term.
Looking closer, market participants highlight key drivers such as liquidity flows, macro risk appetite, regulatory headlines, and on-chain activity. Short-term swings often reflect liquidation cascades and funding imbalances, while spot volumes and exchange inflows set the broader tone.
Analysis: The medium-term picture hinges on whether buyers can sustain momentum without excessive leverage. If flows continue favoring majors like BTC and ETH, altcoins could experience a staggered rotation instead of a broad-based rally. Meanwhile, policy clarity in key jurisdictions remains a decisive catalyst; clearer rules typically compress risk premia and attract institutional allocations. Beyond price action, on-chain metrics such as active addresses, fees, and stablecoin velocity help validate trend strength.
Outlook: Over the next few weeks, observers will watch price acceptance above recent resistance, derivatives positioning, and ETF-related flows. A constructive setup would feature rising spot demand, contained leverage, and improving breadth across sectors such as DeFi, infrastructure, and Layer-2 ecosystems.
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