As Bitcoin navigates another challenging phase of the market cycle in 2026, investors are once again searching for reliable indicators that can help identify whether the worst of the downturn is nearing its end. Among the many on-chain metrics available today, one signal has historically stood out during some of Bitcoin’s most significant market bottoms: the convergence between profitable and unprofitable BTC supply. This phenomenon, often referred to as the Profit-Loss Supply Convergence, has repeatedly appeared near major cyclical lows throughout Bitcoin’s history. While it does not provide an exact timing mechanism for market reversals, it offers valuable insight into the underlying health and positioning of the market. Understanding the Profit-Loss Supply Metric At its core, the Profit-Loss Supply metric measures how much of Bitcoin’s circulating supply is currently held at a profit versus how much is held at a loss. When Bitcoin experiences a prolonged decline, more investors...