A recent analysis by on-chain data expert Murphy suggests that the Profit Supply Percentage (PSIP) is an essential indicator for gauging market sentiment in the Bitcoin space. According to BlockBeats, the seven-day average of PSIP has dipped below 70%, a level historically associated with the transition from bullish to bearish cycles. This downward trend often leads to a subsequent rebound after significant sentiment pressure. Notably, when PSIP falls below 50%, it typically signals a deep bearish phase, presenting potential buying opportunities for investors. 6.7 million BTC are currently in an unrealized loss state according to UPPD data, representing 33% of the total circulation. If Bitcoin’s price dips further, leading to a potential drop to $59,000, this may result in 9.744 million BTC becoming trapped. This would align PSIP with the 50% mark, indicating a deeper bearish phase. However, it’s important to note that PSIP is dynamic and static evaluation offers only an approximate range. Historical experience indicates that if Bitcoin prices reach the $60,000 to $70,000 range, PSIP may fall below 50%, potentially marking a deeper bearish phase.