13% More Bitcoin Supply in Profit as BTC Breaks Past $18,200

• According to data from the on-chain analytics firm Glassnode, 13% more of the Bitcoin supply has gone back into the green as BTC has broken past the $18,200 level today.
• The “percent supply in profit” is an indicator that measures the percentage of the total circulating Bitcoin supply that’s carrying some amount of profit right now.
• The higher the value of the supply in profit, the higher the number of investors that become likely to sell at any point.

The price of Bitcoin has been on a bullish streak over the past few weeks and recently broke the $18,200 resistance level for the first time since December 2017. This has had a corresponding effect on the supply of Bitcoin, as on-chain data from the analytics firm Glassnode shows that 13% more of the Bitcoin supply has now gone back into the green.

The “percent supply in profit” is an indicator that measures the percentage of the total circulating Bitcoin supply that’s carrying some amount of profit right now. It works by going through the on-chain history of each coin in circulation to see what price it was last traded at and if the previous price was lower than the current value of BTC, then that particular coin is carrying some profit.

The higher the value of the supply in profit, the higher the number of investors that become likely to sell at any point. This is why tops have coincided with very high values of the indicator in the past, as investors rush to cash out their profits. The counterpart metric of the supply in profit is the “supply in loss” which measures the opposite kind of supply. Its value can be calculated by subtracting the percent supply in profit from 100.

The data shows that the Bitcoin percent supply in profit has grown to 60.5% now, having been below 50% not too long ago. This is a sign of the bullish sentiment in the market right now and could be indicative of a further rise in the price of Bitcoin over the coming days. With more and more investors becoming likely to sell at any point, it will be interesting to see how the market reacts in the near future.