Key Highlights
- Bitcoin’s circulating supply in profit has fallen to 55-56%, the lowest since the 2022 bear market bottom, with about 10 million BTC now at unrealized losses.
- Amid a 46% drop from its all-time high, BTC trades choppily between $67,000 and $69,000, but historical data shows this profit compression often acts as a floor before upside.
- Long-term Bitcoin holders remain largely intact without deep capitulation, suggesting potential exhaustion selling rather than further downside.
The downtrend in Bitcoin price is currently approaching a critical level, with a number of signals suggesting it may have hit a bottom. Its on-chain metrics are flashing familiar warning signs as the market grinds lower in mid-February 2026.
Latest data from Glassnode shows that the percentage of BTC circulating supply in profit has dipped to around 55-56%, with roughly 10 million BTC now held at unrealized losses. This marks its lowest level since the depths of the 2022 bear market when prices bottomed near $16,000 before the long recovery.
At the time of publishing, Bitcoin trades in a choppy range between $69,000 to $67,000 after shedding 46% from its all-time high.
This sharp compression in profitable BTC holders, down from nearly all supply being green at last year’s highs, mirrors past cycle lows where heavy paper losses forced weak hands out and set the stage for reversals.
Within the crypto landscape, it is regarded that the true bottom often arrives when supply in profit falls closer to 45-50% and realized losses spike harder than seen so far this drawdown.
Historically, it has been proven that every major cycle has seen this profit-supply trendline act as a floor before explosive upside.During this time of period, long-term holders mostly remain intact and avoid the deep capitulation of prior bears.
Whether this marks exhaustion selling or just another leg down remains the open question hanging over traders. Patience is wearing thin, but the setup echoes those that preceded big turns.
Also read: Bitcoin’s 46% Slump Shakes Traders with Open Interest Dropping to $21B
