Analysis: On-chain indicators suggest BTC may be near the cycle bottom as "profit and loss chips" converge

According to Odaily, glassnode data shows that approximately 11.1 million BTC are currently in profit (i.e., the purchase cost is lower than the current market price), while about 8.9 million BTC are in a loss position. As the gap between the two continues to narrow, the Supply in Profit vs Supply in Loss indicator is approaching a historically significant convergence range that has appeared multiple times. This indicator measures the number of wallets currently in a profitable position versus those in a loss position. When the two gradually approach balance, it has historically corresponded to a phase bottom in the market, regarded as an important signal of market capitulation and a long-term positioning opportunity. If the profit and loss supplies converge further, it may indicate that the market is entering a historically common cycle bottom formation stage. However, this still needs to be judged in conjunction with macro liquidity, derivatives structure, and market sentiment, among other factors.