Bitcoin is at a key psychological level, with the profitable supply ratio retesting this level. Historically, when the majority of investors are profitable, market sentiment tends to be more bullish. If Bitcoin holds this level, the likelihood of a sharp decline is low.

In previous bull cycles, such as 2016 and 2020, Bitcoin maintained strong momentum when the price was between the psychological level and the bullish zone. If it broke through this level, the price could continue to rise.

For now, as long as Bitcoin holds this level, the likelihood of a sharp decline is low. If it breaks through, bullish sentiment could push the price even higher.