Glassnode: On-chain indicators show BTC is near the cycle bottom, and profit and loss chips are converging

According to Glassnode data, approximately 11.1 million BTC are currently in profit (i.e., the purchase cost is lower than the current market price), while about 8.9 million BTC are in loss.

As the gap between the two continues to narrow, the comparison of BTC supply in profit versus supply in loss is approaching a key convergence range that has historically occurred multiple times. This indicator measures the number of wallets currently in a paper profit state against the number of wallets in a loss state.

When the two gradually tend to balance, it often corresponds to market phase bottom areas in history, regarded as an important signal for market capitulation and long-term positioning opportunities. If the profit and loss supply further converges, it may indicate that the market is entering a phase of constructing a historical cycle bottom, but it still requires a comprehensive judgment considering factors such as macro liquidity, derivatives structure, and market sentiment.