NUPL Flashes Signal That Last Occurred Prior to 2017 All-Time High – Bitcoin (BTC) On-Chain Analysis

NUPL Flashes Signal That Last Occurred Prior to 2017 All-Time High - Bitcoin (BTC) On-Chain Analysis

In this text, BeInCrypto will check out on-chain indicators for Bitcoin (BTC) more specifically Net Unrealized Profit/Loss (NUPL). The indicator has yet to reach highs that were reached during previous market tops. Furthermore, it has made a development that last occurred in Sept 2017, slightly prior to the blow-off top that led to the then all-time high of $20,560.

NUPL is an indicator that measures the overall quantity of revenue or loss for traders. A studying beneath 0 implies that the market is in combination loss, whereas one above 0 signifies that the market is in combination revenue.

Historically, values above 0.75 (blue) have been related to tops, whereas these beneath 0.25 (purple) with bottoms.

Current studying

On Feb 21, NUPL reached a yearly excessive of 0.748. Compared to the market cycles in 2013 and 2017, it’s the solely time wherein it has not crossed this threshold.

However, measuring from when NUPL first crossed above 0.5, it took 13 months for the highest to be reached. Since NUPL crossed above 0.5 on Oct 2020, the identical has occurred within the present market cycle. 

Therefore, in comparison to the earlier two cycles, both the present one can be longer, or a high can be reached with out a break of the 0.75 line. 

Considering that different on-chain indicators counsel that the bull market is simply starting, the previous appears extra doubtless.

Chart By Glassnode

Short-term NUPL

In the tip of May, NUPL fell beneath 0.5 (blue circle). In the earlier NUPL evaluation, BeIn crypto acknowledged that “Going by earlier historical past, a lower beneath 0.5 might spell the tip of the bull market.”

However, the indicator has been transferring upwards since and is at present at 0.62. Therefore, the bullish pattern stays intact.

Chart By Glassnode

Another fascinating growth is the decrease excessive within the indicator, whereas the worth has made a better excessive. Previously, this has solely occurred as soon as (blue line).

This transpired on Sept 2017, simply prior to the acceleration of the upward motion in direction of the then all-time excessive of 19,800.

For BeInCrypto’s newest Bitcoin (BTC) evaluation, click on right here.


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