CryptoQuant contends that the Bitcoin bull run will come to an end when the supply profitability surpasses a certain threshold. The analysis included these remarks: "The BTC supply in loss may drop by 50 percent before the sell signal."
Onchain Edge, which looked into the market reversal that happened in late 2021, pointed out that supply profit signals have been effective for several months. Onchain Edge noted: "When BTC’s supply in loss drops below 4 percent, you should start aggressively exiting #BTC and wait for the next bear market bottoms."
The metric in question shows the daily moving averages of the current percentage of the supply that is in loss. At present, this metric is hovering around 8 percent levels.
Based on the analysis, February was seen as the appropriate time to start selling BTC in stages and reduce risk. The post by CryptoQuant identified the 4 percent metric as the level at which many investors would be in profit. It was claimed that this level represents the peak of the bull run.
This analysis, which came out when #BTC exceeded $100,000, has caused some anxiety among crypto investors. Many of them argued that the bull run for altcoins hasn't even started yet and that it's too early to start preparing for a bear market.