On-Chain Indicator Flashing Cyclical Bottoming Signal for Bitcoin (BTC), Says Crypto Analyst Benjamin Cowen


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A widely followed crypto analyst says that one key on-chain indicator is pointing toward a cyclical bottom for Bitcoin (BTC).

In a new video update, crypto analyst Benjamin Cowen tells his 774,000 YouTube subscribers that Bitcoin’s percentage of supply in profit and loss metric is flashing signs of a historical bottom for the top crypto asset by market cap.

The on-chain indicator shows what percentage of BTC coins are giving their holders a profit or a loss.

Says Cowen,

“One of my favorite on-chain indicators is the Bitcoin percentage of supply in profit and loss. The reason I like this one is because of how cyclical it looks – the ebb and flow of this indicator…

What you’ll notice is that there is a clear ebb and flow to the bear markets and the bull markets…

What you may notice is that they tend to cross at a certain point throughout the bear market, and in fact, in every bear single market, the Bitcoin [percentage of] supply in profit and loss, they cross. Here in 2011, and in 2014, 2015, and in 2018 and 2019, and they’re starting crossing here again in late 2022.”

Source: Benjamin Cowen/YouTube

Cowen goes on to say that when applying the 30-day moving average to Bitcoin’s percentage of supply in profit and loss, it shows a historical pattern that often foreshadows a price bottom.

“If you apply the [30-day] moving average to [the Bitcoin percentage of supply in profit and loss]… what you’ll notice is that historically, they have always crossed before the bottom was in.

Bitcoin is changing hands for $16,114 at time of writing, a dip of over 3.50% during the last 24 hours.


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