Benjamin Cowen, a cryptocurrency analyst, says the on-chain indicator is sending a cyclical return-to-normal signal for bitcoin (BTC).

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A well-watched crypto analyst claims that a key on-chain indicator is pointing to a cyclical bottom for Bitcoin (BTC).

In a new video update, crypto analyst Benjamin Cowen tells his 774,000 YouTube subscribers that Bitcoin’s supply percentage in the profit and loss metric is flashing signs of an all-time low for the major asset. crypto by market capitalization.

The on-chain indicator shows what percentage of BTC coins gives its holders a profit or a loss.

That’s what Cowen says,

One of my favorite on-chain indicators is bitcoin supply percentage in profit and loss. The reason I like this one is that it seems cyclical – the ebb and flow of this indicator…

What you will notice is that there is a clear ebb and flow in bear markets and bull markets…

What you may notice is that they tend to intersect at some point throughout the bear market, and in fact in every single bear market Bitcoin [percentage of] in profit and loss, they intersect. Here in 2011, and in 2014, 2015, and in 2018 and 2019, and they start crossing paths again here at the end of 2022.”

Cowen goes on to say that applying the 30-day moving average to Bitcoin’s percentage supply in profit and loss shows a historical pattern that often foreshadows a price bottom.

“If you apply the [30-day] moving average at [the Bitcoin percentage of supply in profit and loss]… what you will notice is that historically they have always crossed before the bottom is reached. »

Bitcoin is changing hands for $16,114 as of this writing, a plunge of more than 3.50% in the last 24 hours.

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