BTC profit-taking supply draws attention | Active supply in profit below 45% is an analyst’s estimate | Wait for BTC to hold above $66,000 before discussing a rebound
My stance is to stay defensive for now; I’m not treating “few coins in profit” as permission to buy the dip. The hashtag #BitcoinActiveSupplyInProfitDropsBelow45% has appeared on Binance Square’s trending list, with more than a thousand discussions. The topic cites an estimate by CryptoQuant analyst Darkfost: excluding coins that have not moved for more than ten years, less than 45% of the active supply is in unrealized profit. This is an on-chain analysis with specific screening criteria; it does not mean that only 45% of all BTC holders are in profit. On-chain cost estimates also cannot identify each investor’s actual purchase price. I disagree with people on Square who present this directly as “confirmation that the bull-market bottom is in.”
This indicator matters because a rising share of coins at a loss suggests that recent participants are under greater psychological pressure. One possibility is that panic selling continues to weigh on prices; another is that selling pressure is gradually being exhausted. Both scenarios need to be validated by subsequent trading activity, price action, and capital flows. A single threshold cannot provide a buy signal. The analyst noted that periods below 40% have sometimes been close to correction lows, but the current discussion is about a level below 45%—a different threshold—and historical examples are no guarantee of a repeat. For me, the key things to watch are whether selling volume continues to surge if BTC breaks support, and whether it can hold new support after a rebound.
Institutional flows have not provided clear confirmation today either. According to Farside, on the last U.S. spot BTC ETF trading day, November 13, total net outflows were $185.4 million: $143.5 million from IBIT and $41.9 million from FBTC. Today is the weekend, so the table has no new Sunday creations or redemptions. We cannot turn an increase in on-chain unrealized losses into a claim that ETFs have shifted to buying. The most recent BTC purchase listed in the news section of Strategy’s website was an addition of 250 BTC on October 12. If a Saylor image or speculation surfaces, I’ll describe it only as an expectation and wait for formal disclosure from the company or the SEC.
The market’s reaction so far has not been a one-way recovery. BTC/USDT was around $65,450 on Binance, still down about 2.56% over the rolling 24-hour period, with a range of $62,006 to $67,323. The price has rebounded from the low end of the range but has not broken above the high, suggesting there is support at lower levels while the quality of the rebound remains to be tested. $66,000 is my confirmation level, and the area around $67,300 is overhead supply. If BTC falls below $64,000 again and fails to reclaim it, the rebound thesis weakens; a break below $62,000 would completely invalidate the assumption that this round of lows will hold as support. By market reaction, I mean observable prices and historical ETF data; I am not claiming that the on-chain indicator caused prices to rise.
If I were trading, I would stay out for now and consider only a small spot long, with no leverage. I would use 1.5% of my account’s net asset value to open a test position only if BTC closes two consecutive one-hour candles above $66,000, holds that level on a retest, and ETF flows are no longer significantly negative on the next U.S. trading day. My first target is $67,300, where I would sell half; my second target is $69,000, where I would exit the remaining position in batches. I would set the initial stop at $63,900 and close the entire position if it is hit. If, after buying, BTC falls back below $66,000 for two consecutive hours, I would reduce the position even if the stop has not been hit. If these conditions are never met, I will remain out of the market and won’t describe the plan as a trade already made.
#BitcoinActiveSupplyInProfitDropsBelow45% #BTC
The above is solely my personal market observation and does not constitute investment advice.