Bitcoin on-chain indicator suggests potential buying zone

The Percent Supply in Profit (PSIP) indicator for Bitcoin may indicate a buying opportunity when it falls below 65%, according to crypto analyst Murphy. Historical data shows that both current and previous market cycles reached a bottom after PSIP dropped below 50%, leading to significant rallies that marked the end of bear markets. Murphy noted that during the initial pullback following these rallies, PSIP typically fell to around 65%. If the market is shifting from a bear to a bull phase, PSIP is not expected to drop below 50% again. A decline below 65% could present a favorable buying opportunity, while a drop below 60% would be even more advantageous, mirroring trends from past cycles. Murphy emphasized that this perspective is subjective and based on historical data. Recently, PSIP fell to approximately 65% before rebounding to around 70%.

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