Bitcoin's Profitable Supply Paves Way for Potential Bullish Shift in Early 2026

Despite Bitcoin's ongoing struggle to break the $90,000 threshold, the cryptocurrency's supply dynamics may signal hopeful developments for early 2026. Recent trading efforts have not regained earlier bullish momentum, leading many analysts to voice concerns about a possible bear market extending into next year. Cautious sentiment prevails as traders seek clearer indicators of future price direction. Nonetheless, some market participants believe that Bitcoin is on the cusp of a transitional phase rather than a complete downturn. On-chain analyst Axel Adler points to the significant decline in Bitcoin's 'Supply in Profit,' which has dwindled from over 19 million BTC in October to about 13.5 million BTC in the wake of recent corrections. This shift has created a notable gap between the short-term 30-day moving average and the longer 90-day average, highlighting a critical inflection point. Adler suggests that if Bitcoin can maintain or improve upon its current price levels, this stabilization could lay the groundwork for renewed bullish activity later in 2026. He also indicates that the narrowing gap between moving averages signals a potential bullish crossover that could occur between late February and early March, although caution remains warranted given the current market conditions.