• Login
Crypto Newsmart
No Result
View All Result
  • HOME
  • BITCOIN
  • CRYPTO UPDATES
    • ALTCOIN
    • ETEREUM
    • NFT’s
    • CRYPTO PRICE ANALYSIS
  • LEARN CRYPTO
  • CRYPTO EXCHANGES
  • BLOCKCHAIN
  • MINING
  • SCAM ALERT
  • PRESS RELEASE
  • HOME
  • BITCOIN
  • CRYPTO UPDATES
    • ALTCOIN
    • ETEREUM
    • NFT’s
    • CRYPTO PRICE ANALYSIS
  • LEARN CRYPTO
  • CRYPTO EXCHANGES
  • BLOCKCHAIN
  • MINING
  • SCAM ALERT
  • PRESS RELEASE
No Result
View All Result
Crypto Newsmart
No Result
View All Result

Quant Explains How Bitcoin NUPL Cycles Are Getting Less Vola…

in Crypto Exchanges
Reading Time: 3 mins read
Quant Explains How Bitcoin NUPL Cycles Are Getting Less Vola…
11
VIEWS
Share on Facebook

Bitcoin NUPL data suggests that the crypto’s cycles are getting less sharper with time as profit tops and loss bottoms aren’t following a horizontal line.

Bitcoin NUPL Didn’t Exceed The 0.75 “Greed” Mark During This Cycle

As explained by an analyst in a CryptoQuant post, the BTC profit and loss cycles shouldn’t be treated with horizontal lines.

The “Net Unrealized Profit and Loss” (or the NUPL in brief) is an indicator that tells us whether the market as a whole is holding a net profit or a net loss right now.

The metric’s value is calculated by taking the difference between the market cap and the realized cap, and dividing it by the market cap.

NUPL = (Market Cap – Realized Cap) ÷ Market Cap

When the value of this indicator is greater than zero, it means the average investor is currently holding some profits.

On the other hand, negative NUPL values imply the overall market is holding a net amount of unrealized loss at the moment.

Now, here is a chart that shows the trend in the Bitcoin NUPL over the course of the history of the crypto:

Looks like the value of the metric has surged up and turned positive again recently | Source: CryptoQuant

As you can see in the above graph, the quant has marked the relevant zones of trend for the Bitcoin NUPL indicator.

In the past, many traders used to believe that cycle tops form whenever the metric’s value surges above 0.75, entering into the “greed” zone.

Similarly, bottoms were thought to take place when the indicator went below the -0.4 mark, reaching into the “fear” region.

However, the analyst from the post argues that horizontal lines like these shouldn’t be used to mark these cycle tops and bottoms.

During the previous two cycles, the top that came after was lower than the one before. In the current cycle, the metric never crossed into the greed zone and topped out just around the 0.75 level. This could mean that tops are getting lower and lower with each cycle.

Similarly, the last two bottoms also had descending loss amounts. Just a while ago, the NUPL’s value sharply dropped off into negative and subsequently rebounded back up into positive values after forming a potential bottom. However, this low was far from the conventional 0.4 mark.

If this low was truly the bottom for this cycle, then it would add further credence to the idea that profit and loss fluctuations in the market are getting less drastic with time.

BTC Price

At the time of writing, Bitcoin’s price floats around $24.4k, up 5% in the past week.

Bitcoin Price Chart

The value of the crypto seems to have been moving sideways recently | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com

Source link

Centralized vs Decentralized (Crypto& Exchanges)

Everything you need to know About the Website Moonpay


  • Trending
  • Comments
  • Latest
Expert Bitcoin Price Predictions: From K to K in 2023, and Beyond

Expert Bitcoin Price Predictions: From $20K to $38K in 2023

1 February 2023
How Investigators Trace Crypto Criminals?

How Investigators Trace Crypto Criminals?

30 January 2023
How to trade cryptocurrency on Coinbase

How to trade cryptocurrency on Coinbase

31 January 2023
MoneyGram Partners With Circle To Enable USDC Cross-Border Stablecoin Transactions on Stellar (XLM) Blockchain

MoneyGram Partners With Circle To Enable USDC Cross-Border Stablecoin Transactions on Stellar (XLM) Blockchain

2 February 2023
How to trade cryptocurrency on Binance

How to trade cryptocurrency on Binance

27 January 2023
Sberbank Cover 1024x538 1

Russia’s Largest Bank to Launch Ethereum-Compatible DeFi Platform

5 February 2023
upload 7d22bc5d7be9c0d5d8f50161734559ae

KZG Ceremony Grant Round | Ethereum Foundation Blog

5 February 2023
Article Post Images 23

Bitcoin (BTC) Price to Surge 8x If This Scenario Plays Out – Here’s How and When

5 February 2023
crypto hacking

Hackers Stole $3.8 Billion From Crypto Firms in 2022, Says Chainalysis – Featured Bitcoin News

4 February 2023
ripple sec lawsuit

Ripple Vs SEC Update: Latest Hearing Offers Hope, XRP Gains Upper Hand

3 February 2023

  • Home
  • Disclaimer
  • Privacy Policy
  • Digital Millennium Copyright Act Policy (DMCA)
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us
CRYPTO NEWSMART

Copyright © 2021 Crypto Newsmart.

No Result
View All Result
  • HOME
  • BITCOIN
  • CRYPTO UPDATES
    • ALTCOIN
    • ETEREUM
    • NFT’s
    • CRYPTO PRICE ANALYSIS
  • LEARN CRYPTO
  • CRYPTO EXCHANGES
  • BLOCKCHAIN
  • MINING
  • SCAM ALERT
  • PRESS RELEASE

Copyright © 2021 Crypto Newsmart.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
  • bitcoinBitcoin(BTC)€21,152.17-2.34%
    BITCOIN
    24H : -2.34%
    Volume : €25,415,399,985.28
    Marketcap : €407,506,639,786.24
  • ethereumEthereum(ETH)€1,503.85-2.57%
    ETHEREUM
    24H : -2.57%
    Volume : €7,513,657,747.76
    Marketcap : €181,136,092,305.44
  • usdex-stablecoinUSDEX(USDEX)€0.995-0.96%
    USDEX
    24H : -0.96%
    Volume : €118,440.27
    Marketcap : €102,881,883,688.82
  • tetherTether(USDT)€0.9320.420%
    TETHER
    24H : 0.420%
    Volume : €34,494,852,884.69
    Marketcap : €63,127,939,919.15
  • binancecoinBNB(BNB)€300.26-2.33%
    BNB
    24H : -2.33%
    Volume : €937,863,814.50
    Marketcap : €40,491,244,847.95
  • usd-coinUSD Coin(USDC)€0.9300.280%
    USD COIN
    24H : 0.280%
    Volume : €2,491,708,601.34
    Marketcap : €38,933,277,035.98
  • rippleXRP(XRP)€0.369-3.07%
    XRP
    24H : -3.07%
    Volume : €897,646,353.69
    Marketcap : €18,732,078,914.79
  • binance-usdBinance USD(BUSD)€0.9320.500%
    BINANCE USD
    24H : 0.500%
    Volume : €8,546,203,443.97
    Marketcap : €15,115,063,408.58
  • cardanoCardano(ADA)€0.362-2.15%
    CARDANO
    24H : -2.15%
    Volume : €342,232,221.70
    Marketcap : €12,683,980,395.78
  • dogecoinDogecoin(DOGE)€0.085-4.09%
    DOGECOIN
    24H : -4.09%
    Volume : €859,317,511.76
    Marketcap : €11,693,200,912.06
  • okbOKB(OKB)€41.160.290%
    OKB
    24H : 0.290%
    Volume : €26,014,287.66
    Marketcap : €10,105,156,383.41
  • matic-networkPolygon(MATIC)€1.10-4.82%
    POLYGON
    24H : -4.82%
    Volume : €567,428,877.71
    Marketcap : €9,939,832,686.16
  • solanaSolana(SOL)€21.44-5.04%
    SOLANA
    24H : -5.04%
    Volume : €622,197,700.49
    Marketcap : €7,995,316,474.90
  • shiba-inuShiba Inu(SHIB)€0.000013-4.80%
    SHIBA INU
    24H : -4.80%
    Volume : €949,851,919.05
    Marketcap : €7,793,403,412.94
  • staked-etherLido Staked Ether(STETH)€1,503.51-2.36%
    LIDO STAKED ETHER
    24H : -2.36%
    Volume : €15,437,611.19
    Marketcap : €7,583,844,185.78
  • polkadotPolkadot(DOT)€6.15-3.40%
    POLKADOT
    24H : -3.40%
    Volume : €247,427,232.21
    Marketcap : €7,364,957,254.95
  • litecoinLitecoin(LTC)€88.66-2.79%
    LITECOIN
    24H : -2.79%
    Volume : €480,192,578.61
    Marketcap : €6,397,580,130.06
  • avalanche-2Avalanche(AVAX)€18.39-5.77%
    AVALANCHE
    24H : -5.77%
    Volume : €342,870,680.98
    Marketcap : €5,791,493,506.40
  • tronTRON(TRX)€0.059-1.98%
    TRON
    24H : -1.98%
    Volume : €468,404,899.03
    Marketcap : €5,366,684,892.66
  • uniswapUniswap(UNI)€6.29-6.58%
    UNISWAP
    24H : -6.58%
    Volume : €140,990,182.21
    Marketcap : €4,735,533,303.21
Manage Cookie Consent

We use cookies to optimise our website and our service.

Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
Preferences
{title} {title} {title}