An analyst closely followed by the crypto community gave bad news to Bitcoin bulls. The popular analyst says that these three fundamental patterns are giving signs that the Bitcoin bear market may last longer.
In a new market assessment he posted on Youtube, DataDash host Nicholas Merten talked about signals that would scare Bitcoin bulls. He told his followers that the three models that accurately predicted BTC’s lows in the past do not indicate a rebound any time soon.
Firstly; The analyst points to the net unrealized profit/loss (NUPL) metric, which divides the unrealized profit or loss of Bitcoin investors by the BTC market value.
“All three bottom indicators still show no clear signs of recovery or strength. Here we covered one of our favorite models, the NUPL metric. It’s still in capitulation territory, but still far from what we’ve seen in previous bear markets.”
Merten then examines the supply metric in profit, which measures the amount of BTC currently in the green zone.
“In a typical, normal Bitcoin bear market, we fall into the range of about 45 points. We are currently standing at 51 and saw the lowest 49. We haven’t gotten there yet.”
Merten also mentions the Hash Ribbons indicator, which shows when BTC miners are capitulating (surrender/give up) as operating costs are often higher than mining rewards. This indicator analyzes hash power to understand whether miners should sell their BTC.