Bitcoin NUPL Touches Lows Not Seen Since COVID Crash, Rebound Soon?
20 Mai 2022 - 9:00PM
NEWSBTC
On-chain data shows the Bitcoin NUPL metric has now declined to
lows not seen since the COVID-19 crash back in 2020. Bitcoin Net
Unrealized Profit And Loss Plunged Down Recently As explained by an
analyst in a CryptoQuant post, the NUPL past trend may suggest that
current values could be favorable for a rebound in the crypto’s
price. The “net unrealized profit and loss,” or NUPL in brief, is
an indicator that’s defined as the difference between the current
Bitcoin market cap and its realized cap, divided by the market cap.
The “realized cap” checks what price each coin on the chain was
last moved at, and using these prices it calculates the crypto’s
capitalization (while the normal market cap takes the sum of all
coins’ value at the current price). What this metric tells us is
whether the BTC market participants as a whole are holding a profit
or a loss at the moment. When the value of the ratio is above zero,
it means the overall market is in profit currently. On the other
hand, values less than zero imply holders are carrying a loss right
now. Related Reading | Bitcoin Selling Pressure Continues As
Long-Term Holder SOPR Spikes Up Naturally, the metric being
exactly equal to zero suggests the investors as a whole are just
breaking even currently. Now, here is a chart that shows the trend
in the Bitcoin NUPL metric over the last few years: It seems like
the value of the metric has touched into the green zone recently |
Source: CryptoQuant As you can see in the above graph, the quant
has marked the different zones of the Bitcoin NUPL indicator with
different colors. It looks like the ratio has observed some decline
recently, and its value has now plunged down into the “green” zone
for the first time since the COVID-19 crash. Related Reading
| More Stress For El Salvador As Bitcoin Dips To $29,000 In
the history of the crypto, there have been multiple instances where
shortly after the indicator has touched into this zone, the price
has seen an upwards turn. However, there is also the example of
2018, where the Bitcoin NUPL kept moving sideways in the green zone
for a long while, until finally the value of the coin observed a
sharp plummet, taking the market into loss. It now remains to be
seen whether this time the crypto will follow the pattern of a
rebound, or if it will show a trend similar to that in 2018. BTC
Price At the time of writing, Bitcoin’s price floats around $30.2k,
down 1% in the past week. Looks like the price of the crypto has
been moving sideways around $30k recently | Source: BTCUSD on
TradingView Featured image from Unsplash.com, charts from
TradingView.com, CryptoQuant.com
Quant (COIN:QNTUSD)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
Quant (COIN:QNTUSD)
Historical Stock Chart
Von Apr 2023 bis Apr 2024