Bitcoin Holds Range Near $72K as On-Chain Data Shows Falling Profit Supply

TLDR:

• Bitcoin continues trading below $72K after repeated rejection, keeping the market inside a tight consolidation range.
• On-chain data shows only 59% of the Bitcoin supply remains in profit, nearing levels seen during past bear markets.
• Traders watch $69,100 support and $72,000 resistance as key zones that could determine Bitcoin’s next move.
• Analysts note that extreme loss levels historically create accumulation opportunities before broader market sentiment improves.

Bitcoin continues to trade within a tight range below $72,000 as analysts track liquidity levels and momentum signals.

At the same time, on-chain data shows the share of BTC supply in profit falling toward levels last seen during previous bear cycles.

Bitcoin Faces Resistance Near $72K as Traders Watch Liquidity Zones

Bitcoin has struggled to maintain momentum above the $72,000 region during recent sessions. The market rejected this level again, keeping price action inside a narrow trading range.

Crypto analyst Lennaert Snyder discussed the setup in a post on X, noting that Bitcoin faced rejection near $72,000 again. As a result, he opened a small hedge short after the failed breakout attempt.

According to Snyder, liquidity around $66,590 remains a potential downside target this week. He also noted that the present zone offers poor risk-reward conditions for long positions.

The analyst explained that long setups may become attractive under two scenarios. One option involves Bitcoin reclaiming the $72,000 resistance zone. The other scenario involves a pullback toward the $69,100 level.

That area contains a four-hour imbalance and marks the lower edge of the recent trading range. If buyers regain control, Snyder expects liquidity around $74,800 to become the next weekly target.

Meanwhile, technical indicators still show moderate bullish momentum. The Relative Strength Index currently stands near 65, which signals steady buying pressure.

However, the indicator remains below the overbought threshold of 70. This suggests room for further upside if demand continues.

The Moving Average Convergence Divergence indicator also remains positive. The MACD line stays above the signal line, while the histogram shows weakening but positive momentum.

These signals suggest consolidation may continue before the next directional move develops.

On-Chain Data Shows Bitcoin Profit Supply Near Bear Market Levels

While price remains near recent highs, on-chain data presents a different picture of investor positioning.

CryptoQuant contributor Darkfost shared new data showing a drop in Bitcoin’s profit supply. The analysis estimates that around 59% of the circulating Bitcoin supply currently sits in profit.

This means nearly one Bitcoin out of every two remains held at a loss. The figure sits close to levels observed during previous bear market conditions.

Historically, the market tends to operate with a higher share of profitable supply. Data shows the long-term average sits closer to 75%.

The gap between current levels and the historical average shows that many investors entered positions at higher prices.

The data also identifies a key threshold around the 50% level. Previous bear markets often reached a bottom near that point. Although the current market has not reached that level, the trend suggests widespread unrealized losses across the network.

Darkfost explained that profitable supply plays an important role in sustaining market momentum. When investors hold gains, they are more likely to continue participating in the market. However, when losses dominate the supply distribution, sentiment often weakens.

For this reason, the analyst described the current environment as more suitable for accumulation strategies. Market participants often increase exposure during periods when losses reach extreme levels.

The strategy aims to position investors before broader market sentiment turns positive again. At the same time, exposure typically decreases when the share of supply in profit approaches 100%.

For now, Bitcoin remains within a defined price range while traders monitor resistance near $72,000 and support levels below $70,000.

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