Supply in loss is decreasing
Over a third of total supply were in a loss during the May - July crash (highlighted in red box). The reversal in end of July was one of the first signs on capitulation where weak hands sold to the whales / smart money.
SOPR (Spent Output Profit Ratio), an indicator that reflects the degree of realized profits for Bitcoin moved on-chain. While majority of the addresses realized losses during the May dump, we saw some profit taking on the rebound towards end of July - this could either signal the market is anticipating a dead cat bounce or again weak hands selling. Which one would be the case?