Bitcoin NUPL Metric Signals Start Of Early Bear Period

Name	Symbol	Market	Market Cap ($)	Algorithm
Bitcoin	BTCUSD	Crypto	1,210,165,336,012	SHA-256d

Name

Symbol

Market

Market Cap ($)

Algorithm

Bitcoin

BTCUSD

Crypto

1,210,165,336,012

SHA-256d

	Price Change	Price Change %	Current Price	Bid Price	Offer
	-790.96	-1.27%	61,543.39	61,534.39	61,536.87

Price Change

Price Change %

Current Price

Bid Price

Offer

-790.96

-1.27%

61,543.39

61,534.39

61,536.87

High Price	Low Price	Open Price	Prev. Close	52 Week Range
63,013.05	61,424.79	62,384.32	62,334.35	24,750.00 - 73,835.57

High Price

Low Price

Open Price

Prev. Close

52 Week Range

63,013.05

61,424.79

62,384.32

62,334.35

24,750.00 - 73,835.57

Exchange	Last Trade	Size	Trade Price	Currency
GDAX	21:49:50	0.001605	61,550.59	USD

Exchange

Last Trade

Size

Trade Price

Currency

GDAX

21:49:50

0.001605

61,550.59

USD

Price x Volume	Volume	Base Symbol	Related Pairs
520,643,890.64	8,355.19	BTC	BTCEUR	BTCGBP	ETHBTC

Price x Volume

Volume

Base Symbol

Related Pairs

520,643,890.64

8,355.19

Bitcoin NUPL Metric Signals Start Of Early Bear Period

25/01/2022 7:00pm

NEWSBTC

Bitcoin NUPL indicator has sharply dropped in value recently, a trend that may signal the start of the early bear market period. After The Crash, Bitcoin NUPL Value Has Declined To 32.5% According to the latest weekly report from Glassnode, the BTC NUPL’s recent trend may suggest that the early bear market is now beginning. The “Net Unrealized Profit and Loss” (or NUPL in short) is an on-chain indicator that measures the difference between the relative unrealized profit and the relative unrealized loss. NUPL = (Market Cap – Realized Cap) / Market Cap In simpler terms, what this metric tells us is whether the Bitcoin market as a whole is currently in a state of profit or of loss. The indicator works by looking at each coin on the chain and checking whether its current price is lower or higher than the price it was bought at. When the NUPL value is above zero, it means the overall Bitcoin network is currently in profit. On the other hand, negative values imply investors are, on average, in loss at the moment. Historically, the more the indicator has deviated from zero, the closer the price has been to a top or a bottom (depending on which way of zero the metric currently points). Related Reading | Following Crash, Bitcoin Open Interest Declines To Sept 2021 Levels Now, here is a chart that highlights the trend in the Bitcoin NUPL over the history of the coin: Looks like the metric's value has sharply declined recently | Source: The Glassnode Week Onchain - Week 4, 2022 As the above graph shows, the Bitcoin NUPL has sharply declined recently, and its value is now 0.325. This means that currently 32.5% of the crypto’s market cap is being held as unrealized profit. Related Reading | Has Bitcoin Reached Its Bottom? Analyst Says It Still Has A Long Way To Go The indicator’s current value seems to be in a region that has historically signaled an early bear market trend, as the colors in the chart highlight. The trend over the past year has also been that of a bearish divergence. Therefore all NUPL signs are that this may now be the beginning of a new bear market. An interesting fact is that similar values were also there following the May 2021 crash. Thus in a sense, a bear market also started then, but it only lasted for a few months. BTC Price At the time of writing, Bitcoin’s price floats around $36.4k, down 12% in the last seven days. Over the past month, the crypto has lost 28% in value. The below chart shows the trend in the price of BTC over the last five days. BTC's price plunged to $33k yesterday, but has since recovered back above $36k | Source: BTCUSD on TradingView Featured image from Unsplash.com, charts from TradingView.com, Glassnode.com

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