Analyst: A PSIP indicator below 50% may signal the bottom of a bear market, corresponding to a Bitcoin price of around $62,000.

On December 10th, according to the latest analysis by analyst Murphy, a key on-chain indicator called the "Profit Supply Percentage" (PSIP) can assist in judging the current cycle phase of the Bitcoin market.

It is reported that this indicator clearly reflects the proportion of circulating supply of Bitcoin that is in profit, and its value fluctuations can effectively measure the overall profit or loss level of the market.

The analysis points out that the PSIP once fell below the 65% "boom-and-bust line" between November 22nd and 23rd, which is a signal of market sentiment turning dangerous and selling pressure possibly intensifying.

Currently, the indicator has rebounded to 67.6%, but remains in the critical and sensitive range of 65%-70%. This indicates that market confidence is still fragile. If the PSIP can steadily rise above 70%, market confidence could be restored; however, if it continues to decline, it may trigger another round of panic selling.

From historical patterns, when the PSIP indicator drops below 50%, it typically corresponds to the bottom region of a bear market. According to the latest calculations, Bitcoin's price would need to fall below $62,000 to push the PSIP indicator back into this range. Therefore, this price level is also identified by analysts as a potential bear market bottom that warrants close attention.

The viewpoint suggests that if Bitcoin’s future price indeed falls into this zone, it could present a high-value investment opportunity for long-term investors. However, this requires great patience and readiness to face market volatility risks.

In summary, the PSIP indicator provides a quantitative perspective for the public to understand market sentiment and cycle positioning. Based on this perspective, the current market is in a critical stage of confidence rebuilding.

If the PSIP indicator drops below 50%, corresponding to Bitcoin falling below $62,000, it should be viewed as a potential bottom area supported by important historical patterns.

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