Bitcoin's market cycle continues to unfold with significant fluctuations in price action. A technical analysis by CryptoQuant senior analyst Julio Moreno examines the Net Unrealized Profit/Loss (NUPL) indicator, a crucial metric for assessing investor sentiment and market phases.
The NUPL indicator measures the difference between unrealized profits and losses across the Bitcoin network relative to each coin's last movement price. Historically, market bottoms have consistently formed only after the NUPL for long-term holders turns negative, indicating a state where accumulated unrealized losses exceed unrealized profits across the network.
Moreno notes that while current data shows accelerated adjustment and significant profitability decline from 58% to just 3% within months, the NUPL remains above zero. This suggests that despite price declines, long-term holders have not yet entered a state of net unrealized loss.