Bitcoin NUP Metric Signals Potential Market Bottom
Bitcoin ($BTC) has witnessed a considerable decrease when it comes to profit. Hence, the Net Unrealized Profit (NUP) of Bitcoin ($BTC) has plunged to 0.476. As per the data from CoinCare, a renowned crypto analyst at CryptoQuant, this downturn in NUP highlights a likely market bottom for the leading crypto asset. Keeping this in view, the market onlookers are keenly watching for the potential catalysts to occur in the near term.
Bitcoin NUP Plunges to 0.476, indicating Likely Bottom
In line with the market data, the Net Unrealized Profit (NUP) metric of Bitcoin has dipped to 0.476. This plunge reportedly signifies a potential bottom for the flagship cryptocurrency. NUP is a critical metric to measure the unrealized profits that the investors hold while still getting profit. The high value of this metric typically denotes the heightened selling pressure because the holders are reportedly indulging in profit-taking.
On the other hand, a dip below the 0.5 mark historically points toward a bottom in the market because fewer investors witness profit while selling. Apart from that, the latest data also discloses 3 distinct phases in the present cycle where Bitcoin’s NUP metric slumped near 0.47. Among them, each trough led to a substantial spike in the price of $BTC. This reaffirms the reliability of this metric when indicating a market bottom. At the moment, the decline to 0.476 displays a similar scenario.
Traders Stand Cautious to Gauge Next Market Turn
According to the CryptoQuant analyst, the historical statistics underscore Bitcoin’s ($BTC) approach to a market bottom amid NUP’s decrease to the 0.47 threshold. Thus, amid the provisional volatility, the data present a favorable setup to trigger a continued upside. Overall, the traders are cautious while waiting for the macroeconomic factors to determine the next market move.
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Trading time: Tonight, the US GDP and the upcoming non-farm data will become the market focus. Institutions are bullish on BTC to $120,000 in the second quarter.
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