Bitcoin Supply Showing Bottoming Signals as 40% Falls Underwater on July 17

According to Fidelity Research Analyst Zack Wainwright, on July 17, Bitcoin's long-term holders (those holding over six months) are approaching a record 15 million BTC, with approximately 40% of this supply now underwater. Historically, this level has aligned with Bitcoin's market cycle bottoming process. The 30-day average BTC supply in loss climbed to 50% as the asset slipped below $63K on Friday.

Past patterns show BTC bottomed near $16K in 2022 when supply in loss peaked at around 50%. However, macro and geopolitical pressures could limit near-term gains. Bitcoin was trading at $62.8K at writing, down 4%, with options positioning suggesting traders are hedging for potential downside to $62.5K and $56K.