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Bitcoin NUPL Shows Average Holder Back In Profit, But For How Long?

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On-chain data shows that Bitcoin’s NUPL metric has returned to positive, suggesting the market as a whole has returned to profit.

The latest Bitcoin NUPL trend may signal that the bottom has already been reached

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As the analyst pointed out in a CryptoQuant post, a BTC NUPL breakout above the neutral market could be a sign that a bottom has been set.

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“Net Unrealized Profit/Loss” (abbreviated as “NUPL”) is a measure defined as the difference between market capitalization and realized capitalization divided by market capitalization.

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Simply put, this metric tells us about the profit to loss ratio among investors in the current bitcoin market.

The indicator works by looking at the history of each coin on the network to see what price it last moved at. If this sale price of any coin was less than the current value of BTC, then that particular coin now has some profit. Otherwise, he is currently at a loss.

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When the NUPL value is greater than zero, it means that investors in the bitcoin market as a whole are making a profit. On the other hand, a negative value of the indicator means that the entire market is currently in a loss.

Now here is a chart showing the BTC NUPL trend over the past few years:

Bitcoin NUPL

The value of the metric seems to have surged up in recent days | Source: CryptoQuant

As you can see in the chart above, quantitative analysis has marked the respective bearish trend zones in the NUPL bitcoin market.

It seems that some time after a deep drop below zero, a bounce back to positive values ​​was a sign of bottoming during previous bear markets.

Currently, the indicator has returned to a positive value after a recent surge. This means that investors in general are now slightly in profit.

Based on past cycles, this trend could mean that the bottom of the Bitcoin bear market has already been reached.

However, as you can see from the chart, a move to green NUPL values ​​does not necessarily mean the end of the bearish trend. This only indicates that the cryptocurrency has already faced the worst.

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Past bear markets have lasted much longer than current ones, so it’s possible that if a pattern like this follows, the market could fall back into losses and move sideways for a while before proper bullish momentum builds up.

Bitcoin Price

At the time of writing, the price of Bitcoin is hovering around $22.6k, up 10% from last week.

bitcoin price chart

BTC has slumped down during the last 24 hours | Source: BTCUSD on TradingView
Featured image from Kanchanara on, charts from,

Credit :

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