Bitcoin Supply In Profit Sets The Stage For Bullish Cross In Q1 2026

Bitcoin is currently struggling to surpass $90,000, signaling a lack of bullish momentum after weeks of consolidation. Analysts are increasingly concerned about a potential bear market lasting into 2026, due to the market's fragility. Some investors view this period as a transitional phase rather than a complete trend reversal. On-chain analyst Axel Adler analyzes the "Supply in Profit" metric, which has significantly decreased, potentially creating a bullish setup. A key difference from the bearish 2022 is that the 365-day moving average remains elevated. Adler projects a possible bullish cross of the 30-day and 90-day moving averages in late February or early March, if current trends continue. This convergence depends on Bitcoin holding its price above $70,000, which is a critical level. Bitcoin's price action shows a decisive loss of bullish control, with the 50-day and 100-day moving averages acting as resistance. Momentum has cooled, and the current price action suggests a consolidation range between $85,000 and $90,000. Reclaiming $90,000 is crucial for restoring bullish sentiment, otherwise, downside risks remain. Overall, the broader market structure favors continued range-bound or corrective price action until Bitcoin regains key moving averages.