Bitcoin [BTC]: Indicators point at a bull cycle, and on-chain data reveals…
In a new report , CryptoQuant analyst Sachi found that the assessment of Bitcoin’s [BTC] Net Unrealized Profit/Loss (NUPL) revealed that the leading coin has commenced a new bull cycle.
The NUPL is a metric used to evaluate the profit margin of the BTC market in relation to its market capitalization. A value below zero indicates an accumulation phase, while values above 0.5 suggest a distribution phase.
According to Sachi, “the crucial threshold to monitor is 0.2.” In the current market, BTC’s NUPL has reached this “crucial” position.
The review conducted by the analyst on BTC’s historical performance found that a golden cross, which typically occurs between the 128 and 200-day moving averages, signals the end of the accumulation phase when the NUPL metric reaches or surpasses 0.2. This signifies the commencement of a bull market.
Sachi concluded that a bull cycle was underway as all three critical factors were present once again in the current cycle.
Source: CryptoQuant
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For the first time since the unexpected fallout of cryptocurrency exchange FTX, BTC traded momentarily above the $25,000 price mark on 16 February.
Although the king coin’s price later went on to trade below $25,000, for a few weeks, investors anticipated that BTC would reclaim the price position, leading them to open several long positions.
However, things failed to go as expected, leading to dwindling conviction in any further price rally. Investor’s confidence plummeted further on 3 March when BTC’s price suddenly fell by 5%, dropping from $23,500 to $22,240 due to a sense of insecurity and doubt surrounding Silvergate Capital .
T his led to the liquidation of the long positions
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