Crypto market analyst Darkfost said on Oct. 20 that Bitcoin is still in a phase marked by weak investor confidence and hesitation from both buyers and sellers. He pointed to the share of supply in profit, which has fallen back to 53.8% after briefly moving above 60%, leaving the metric close to the 50% break-even line. The indicator excludes Bitcoin held for more than 10 years in an effort to better reflect conditions in the actively circulating market. Darkfost said this pattern is not unusual near the end of a bear market. After a sell-off and capitulation phase pushes the share of supply in profit below 40%, the market often needs time before it can climb back above 50%. In his view, confidence recovery and the formation of fresh demand do not happen quickly, and the market still needs investor behavior to stabilize before profitability conditions can improve on a sustained basis.
According to BlockBeats, crypto market analyst Darkfost said on Oct. 20 that the Bitcoin market is still in a stage of weak investor confidence, with both buyers and sellers showing hesitation.
He said the share of supply in profit has retreated to 53.8% after a brief move above 60%, putting the metric close to the 50% break-even line. The indicator excludes Bitcoin that has been held for more than 10 years to better reflect conditions in the current circulating market.
Darkfost said this kind of setup is not uncommon near the end of a bear market. After the market goes through a sell-off and capitulation phase and the share of supply in profit drops below 40%, it usually takes time to move back above 50%.
He added that investor confidence and new demand both need time to recover, and the market is still waiting for investor behavior to stabilize and support a sustained improvement in profitability.
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