23 February, 2024

Bitcoin Price And NUPL Data Moves In Same Direction; Is Correct Time To Buy?

10 months ago

21 Nov, 2023

Recent Bitcoin price action caused the Net Unrealized Profit/Loss ( NUPL) indicator to turn bullish. According to the latest tweet from the on-chain analytic platform, CryptoQuant.com, The NUPL (Net Unrealized Profit/Loss) is a useful on-chain indicator that measures the difference between the unrealized profits and losses of Bitcoin holders. 

When analyzing the BTC price and NUPL daily chart, it is important to consider the overall trend and key levels of support and resistance. Looking at historical data, BTC has experienced significant price fluctuations over time, with sharp increases and decreases in value. 

In general, when the NUPL indicator is above 0.5, it suggests that most of the Bitcoin holders are in profit, while a value below 0.5 indicates that most holders are at a loss. When the NUPL value approaches 1.0, the market might be overheated, and a correction may be imminent.

As of press time, BTC/USD is trading at $29,228, down nearly 4% for the day. The 24-hour trading volume rose to 21.74% at $19,854,937,760. A fall in the price along with the fall in volume is a bearish sign in general.

On the daily chart, the Bitcoin price is trading along the bullish trend line that extends from the low of $19,569.0. This also coincides with the 21-day Exponential Moving Average (EMA). If the price breaks below the ascending trend line, it could be the beginning of a price correction. If that occurs, the Bitcoin price could test the low made on March 27 at $26,541.

The Relative Strength Index (RSI) falls below the average line, indicating a selling pressure in the price. Another momentum oscillator, the Moving Average Convergence Divergence (MACD) gives bearish divergence with increasing bearish momentum. In a nutshell, the Bitcoin price might be corrected in the short term.