Onchained, a crypto analyst firm, recently shared valuable insight into the cryptocurrency industry. important metric This can be used as a gauge the future trajectory of Bitcoin. The analyst said there were no reasons to worry about the current market, but he did highlight some things to look for when deciding the time to leave.
The Null Point Value of Bitcoin Short-Term Investors has turned Negative
Blogs postAnalysts have noted the NUPL for Bitcoin. short-term holders Recent price action has turned negative. Analysts believe that the current Bitcoin price is likely to cause fear in this group of investors. Last time, this pattern was seen after the Spot Bitcoin ETFs were approvedBitcoin dropped from $49,000 down to $38,000 after that event.
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Source: CryptoQuant
Analysts noted that the NUPL for short-term holders turning red may indicate a major price decrease, but that it could also be just a strong support level. Real concern could be if the NUPL for mid-term holders The negative also becomes obvious. “It could indicate widespread market fear and serve as a crucial risk management indicator for exiting the market,” The analyst claimed.
The short-term holders’ NUPL is negative, which means that they have an unrealized investment loss. The fear is that this could lead to a massive sell-off by these investors. Bitcoin’s price could further dip. According to the analysts’ analysis, Bitcoin’s value may not be affected by this.
The PUNL should worry market speculation more than the long-term holders of Bitcoin (those holding Bitcoin between 3 and 6 months). The PUNL turning negative is also a concern. “suggest widespread pessimism or negative sentiment.” It could be a dangerous situation massive selling pressure Investors in this group may also sell their Bitcoins due to fear.
It’s possible that the worst is already over
Crypto analyst Ali Martinez had previously shared A similar analysis was done by Onchained. They noted that the Bitcoin realized price for short-term holders (STHs) stood at $59,000. Analysts warned that Bitcoin falling below the level of $59,800 could lead to a crash. “notable Bitcoin price corrections.” After his prediction Bitcoin fell below $59,800Is dropping as low as $57,700.
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Since then, however, Bitcoin has risen above $60.000. Bitcoin may still be showing signs of bearishness, but its rapid recovery over $60,000 indicates that it is likely to recover. catalyst It will spark the continuation of this bull run.
Arthur HayesBitMEX co-founder, and former CEO of BitMEX, confirmed that Bitcoin had already reached its bottom in the local market. But he did say that Bitcoin has already reached its bottom in the local market. predicted Bitcoin is likely to have an impact on the economy “range-bound price action between $60,000 and $70,000 until August.”
BTC bulls boost price to $63,000+ | Source: BTCUSD on Tradingview.com
Chart from Tradingview.com, image by Kiplinger
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Source: www.newsbtc.com