BTC supply in loss hits 40.6%, but analyst says bottom not yet in

The percentage of Bitcoin's supply currently in a state of loss has climbed to 40.6%, but this may not signal a market bottom, according to on-chain analyst Julio Moreno. In a contribution to CryptoQuant, Moreno explained that since 2015, major market bottoms have typically formed when this metric reaches the upper boundary of a long-term downtrend line. He noted that while earlier bear markets required over 60% of supply to be at a loss to form a bottom, this threshold has consistently lowered in subsequent cycles. Although the current 40.6% level indicates significant market stress, Moreno stated it has not yet reached the point historically considered a prime buying opportunity. He suggested that if Bitcoin's price weakens further or moves sideways, the percentage of supply in loss could retest this critical trendline.