Bitcoin NUPL For Both Short-Term & Mid-Term Holders Is Neutral Currently
As pointed out by an analyst in a CryptoQuant , the BTC NUPL has been retesting crucial levels recently. The “Net Unrealized Profit/Loss” (NUPL) is a metric that keeps track of the net amount of profit or loss that investors are holding currently.
This indicator works by looking through the on-chain history of each coin in circulation to see what price it was last moved at. If this previous transfer price for any coin was less than the current spot price of Bitcoin, then that particular coin is holding a profit right now.In the context of the current discussion, the entire market isn’t of interest, however, only specific sections of it are. In particular, two BTC cohorts called the “short-term holders” (STHs) and the “mid-term holders” (MTHs) are of relevance.
The STHs include all investors who bought their coins within the last six months, while the MTHs are those who have been holding their coins since at least six months ago and at most 2 years ago.Looks like the value of the metric has approached zero recently | Source:
As displayed in the above graph, the Bitcoin STH NUPL has been positive throughout this rally that first started back in January of this year. Generally, this is the case in bullish trends, as the STHs are those who bought relatively recently, so any price rises immediately reflect on their profit/loss status.
The metric is retesting the break-even line | Source:The MTHs had been sitting in losses until now, but they are on the verge of transitioning back into profits currently. If the metric can manage to break through the level, then it would be a positive sign for the rally, as the bullish trend has historically continued whenever these investors have come back above water. The break-even line providing resistance to Bitcoin, however, is also a possibility, in which case the asset would feel a bearish effect. It now remains to be seen how this retest, as well as the one of the STH NUPL, would pan out in the coming days.
BTC Price
At the time of writing, Bitcoin is trading around $29,000, down 1% in the last week.BTC continues to move sideways | Source: