Bitcoin (BTC) may be approaching the conclusion of its current bull market phase, as indicated by the declining Supply in Profit indicator, according to insights from pseudonymous analyst @Yonsei_dent shared in CryptoQuant Insights. Amid recent significant price drops in BTC, the Fear and Greed index has plunged to levels not seen since September 2023.

The Supply in Profit indicator tracks the percentage of Bitcoin's circulating supply that is currently in a profitable position. Based on historical patterns, the analyst utilizes a long-term moving average (1,500 DMA) and considers a ±1 standard deviation (SD) range. Typically, each bull market witnesses around three substantial corrections (30-40% declines). In the current cycle, BTC has already experienced a 21% drop in May, followed by an additional 16% decline during the ongoing market correction.

@Yonsei_dent's analysis suggests that, historically, major bull market phases tend to last a minimum of two months beyond the current point. However, concerns arise if the Supply in Profit indicator drops below the +0.4 SD mark and approaches the 1,500 DMA, potentially signaling the onset of a bear market.

As of the latest update, Bitcoin is striving to maintain levels above $61,500, representing a nearly 17% decline from its peak in March 2024. The recent downturn in Bitcoin's price coincides with the commencement of the Mt. Gox compensation program, which has injected uncertainty and triggered selling pressures expected to unfold in July.

The Fear and Greed Index for Bitcoin has plummeted to 30/100, indicating widespread "Fear" among investors. This rapid decline, marking a more than 60% drop in just one week, reflects the highest level of fear sentiment since the mid-September 2023 period, highlighting the current apprehension in the market.

The coming months will be crucial for Bitcoin as it navigates through these indicators and market dynamics, potentially shaping the trajectory of its price action and signaling shifts in sentiment from fear to greed or vice versa.