Has Bitcoin Hit Bottom Yet? Here’s What On-Chain Data Says

    Bitcoin continued to crash down yesterday, with the coin hitting as little as $21k earlier than rebounding to present values. Has the crypto made the underside but?

    Bitcoin NUPL Indicator Assumes Negative Values For First Time Since 2020

    As identified by an analyst in a CryptoQuant post, the NUPL metric has declined under zero, which may very well be an indication that the crypto could also be approaching a backside.

    The Bitcoin “net unrealized profit and loss” (NUPL) is an indicator that’s outlined because the distinction between the market cap and the realized cap, divided by the market cap.

    In easier phrases, what this metric tells us is whether or not the general market is presently holding an unrealized revenue or a loss.

    When the NUPL’s worth is larger than zero, it means the buyers as a complete are in a state of revenue in the meanwhile.

    On the opposite hand, values of the metric lower than zero indicate the Bitcoin market as a complete is now holding an unrealized loss.

    Now, here’s a chart that reveals the pattern within the BTC NUPL over the previous few years:

    Bitcoin NUPL

    The worth of the indicator appears to have plunged down not too long ago | Source: CryptoQuant

    As you may see within the above graph, the Bitcoin NUPL has sharply decreased in worth over the previous couple of days as the value of the crypto has noticed a crash.

    The indicator now has a unfavourable worth, suggesting that the general BTC market is now holding some unrealized loss.

    Related Reading | Bitcoin Long-Term Holders Realize March 2020-Like Losses As BTC Crashes

    The final time the indicator dropped this low was again in March 2020, following the crash attributable to the onset of COVID-19.

    Historically, Bitcoin has approached a backside each time the NUPL metric has reached a unfavourable worth of round 0.2.

    This is as a result of because the indicator decreases additional in worth, buyers begin going deeper into pink, and the motive to promote begins dying down.

    Related Reading | Bitcoin Weekly RSI Sets Record For Most Oversold In History, What Comes Next?

    While the Bitcoin NUPL has now gone under zero, the metric’s worth remains to be bigger than it was through the earlier bottoms.

    So, if an analogous pattern as these previous cases follows now as nicely, then BTC could have room to say no additional nonetheless earlier than the underside is in.

    BTC Price

    At the time of writing, Bitcoin’s price floats round $22k, down 33% within the final seven days. Over the previous month, the crypto has misplaced 27% in worth.

    The under chart reveals the pattern within the worth of the coin during the last 5 days.

    Bitcoin Price Chart

    The value of BTC has crashed down over the previous few days | Source: BTCUSD on TradingView
    Featured picture from, charts from,

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