- In a recent post, CryptoCon, a prominent Bitcoin technical analyst, shared valuable insights on Bitcoin’s current price and data trends.
- According to the technical analyst, the transition of NUPL into the orange zone can occur anywhere within the Bitcoin price range of $40,000 to $48,000.
- Drawing from historical data, the analyst mentioned that Bitcoin usually takes about four to six weeks from the current data point to reach the orange zone on the NUPL chart.
As per the latest assessment by the renowned analyst, Bitcoin is facing strong resistance in terms of price, but the NUPL indicator suggests significant upside potential!
Current Analysis of Bitcoin’s NUPL Indicator
In a recent post, CryptoCon, a prominent Bitcoin technical analyst, shared valuable insights on Bitcoin’s current price and data trends. According to CryptoCon, Bitcoin is currently facing strong price resistance. However, data analysis paints a more optimistic picture. In other words, while Bitcoin is encountering strong price resistance, it doesn’t reflect in the data.
CryptoCon noted that during every market cycle, Bitcoin’s Net Unrealized Profit/Loss (NUPL) indicator transitions into the “orange” zone, constituting the midpoint of the cycle. NUPL is a metric that measures the overall profitability of all Bitcoin holders. When NUPL is in the orange zone, most Bitcoin holders are in profit, which typically serves as a bullish signal.
Specifically, according to the technical analyst, the transition of NUPL into the orange zone can occur anywhere within the Bitcoin price range of $40,000 to $48,000. Given that Bitcoin is currently around $34,000, it’s clear that the transition hasn’t occurred yet, the analyst pointed out.
Current Conditions Resemble 2015 and 2016
CryptoCon argued that Bitcoin’s current market conditions are similar to what was observed during the 2015 and 2016 market cycles, with comparable resistance, support, and other factors. Drawing from historical data, the technical analyst mentioned that Bitcoin typically takes about four to six weeks from the current data point to reach the orange zone on the NUPL chart.
Additionally, by stating that “this could end in late November or early December,” the analyst suggested that the transition into the orange zone might happen sooner than expected. In other words, the analyst seems to believe that history may repeat itself, and Bitcoin could be poised for another significant rally within a few weeks.
