A historically significant 30% of the Bitcoin supply is now held at a loss — and that has ended in a bullish rebound twice since March 2020.
Bitcoin (BTC) hodlers face a crucial week in more ways than one as $42,000 rekindles a familiar battle.As noted by on-chain analytics firm Glassnode on Monday, 30% of the BTC supply is now at a loss — historically, this has been a key number to defend for bulls.Mixed opinions on rebound chancesBitcoin's descent from $69,000 to current levels — at one point over 40% — is nothing unusual, but for long-term investors, there is a specific reason to hope that current support holds.Looking back at historical price performance, Glassnode reveals that once 30% of the supply goes "underwater," price rebounds often occur."As the bears apply pressure to the in-profit cohort of holders, Bitcoin bulls are defending a historically significant level of the Percent of Supply in Profit metric," staff explained in the latest edition of its weekly newsletter, The Week Onchain, describing bulls as "under siege.""This magnitude of 'top heavy supply' was defended in two instances in the last few years."These were the post-Covid market crash in March 2020 and summer 2021, in the aftermath of the China mining crackdown. The 30% in-loss level resulted in an upside impulse move for spot price in both instances.Bitcoin percent of supply in profit annotated chart (screenshot).