Bitcoin Price Shows First Bottom Signal in 3 Years as Selling Pressure Cools

Bitcoin has tried to recover in recent sessions but upward momentum has stalled, leaving the price range-bound after a sharp correction. Profitable supply fell to around 50% — a threshold last seen during the 2022 bear market — meaning roughly half of circulating BTC is now underwater and suggesting a bottom may be forming rather than a prolonged sell-off.

When profitable supply compresses to these levels, selling incentives tend to weaken as holders become less willing to realize losses, reducing sell-side pressure. Lower prices also attract fresh capital, with value-oriented buyers historically entering when downside risk appears limited relative to upside potential, helping revive recoveries.

Macro indicators support the bottoming narrative. The Pi Cycle Top Indicator, which compares the 111-day moving average to a doubled 350-day moving average, is not flagging overheating; the shorter average is diverging below the longer one, signaling cooling conditions.

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