Grizzly
What are the market's current sentiments?
In this study, we will look at the NUPL index, both from an educational standpoint and from a long-term viewpoint. This index is an abbreviation for Net Unrealized Profit and Loss, and it is calculated as follows: (difference between market cap and realized cap divided by market cap) You've all heard of Market Cap: the current price multiplied by the number of coins in circulation yields this metric. The realized cap, on the other hand, is calculated by multiplying the realized price by the number of coins in circulation. When the NUPL index is greater than zero, it shows that the coins in investors' pockets are in profit on average, and vice versa. The intriguing aspect of NUPL is that it defines market mood in several colors. When it goes blue, for example, it suggests that investors are holding a lot of losses, and historically, these places have been the finest purchasing opportunities for individuals with a long-term perspective. As seen in the chart, everytime this index reached the blue zone and fell between minus 0.2 and minus 0.3, and even lower, it gave a once-in-a-lifetime chance for accumulation. When this metric, on the other hand, goes to yellow and orange colors, it indicates that the market is gradually entering the euphoric period and has given a lot of profit to investors. In this case, the level between 0.5 and 0.6 in this indicator might be regarded as a turning point or even resistance. If we look at previous patterns, we can see that when NUPL entered this range, price swings increased, and in rising trends, there were often big corrections. This indicator just returned to this level after a two-year absence, prompting a big market slump. Although such a price correction is healthy in powerful uptrends, it should be noted that such corrections can be time-consuming. There is currently no evidence of a trend reversal. But if NUPL returns to the range of 0.4 to 0.3, Bitcoin price is predicted to seek lower levels as well.