Analyst: Currently, nearly 40% of BTC's chips are in a state of loss, reaching the first round of decline target level of previous bear market cycles

BlockBeats News, November 18th, On-chain data analyst Murphy posted on social media, stating that BTC's Profit Supply Shock Indicator (PSIP) 7-day moving average has dropped below 70%, indicating that after this round of decline, nearly 30% of the entire chain's chips are now at a loss. If we exclude BTC that has not moved for a long time, lost coins, and similar to Satoshi's coins, this ratio is expected to exceed 40%.

Murphy added that in the first round of decline from bull to bear market in the past 10 years, PSIP has always reached the current position, followed by a rebound after extreme emotional pressure, as seen in 2018 and 2020. Especially in 2021, there was an additional 519 Black Swan event. However, even if a rebound occurs, it may not be able to regain the upward trend, as there are too many chips in the market waiting to exit during the rebound.