With Bitcoin (BTC) falling below $20,000 again, while increasing the level of fear in the market, the $ 19800 level is closely followed as it represents the peak of 2017. In these days when it is difficult to technically interpret Bitcoin following what is happening with the global markets, on-chain data continues to give the "green" light.

When Bitcoin went down to $18,000 levels, 5 shared indicators remained in the buy zone, while another indicator lit a bottom signal. According to the “Net unrealized profit/loss” (LTH-NUPL) chart of wallets with long-term Bitcoin holders published by Glassnode, the market has entered the capitulation zone again.

lth nupl

As can be seen in the chart, peaks are seen in Bitcoin when this indicator leaves the blue zone (greed). The real bull market starts at the entrance to the blue zone. The first moment we enter this region can be considered as the beginning of the bull and the end of our exit. We see that this table works very well in 2012, 2013, 2014 and 2017. We see that we descended into the red zone again after every summit, except for 2013. According to this chart, the orange and red zones indicate very good buying opportunities in Bitcoin and altcoins, and we are now in this zone again.

We spent about 8 months in the “red” zone in 2015, and 4 months in 2018. For this reason, although this data gives a bottom signal, it should not be interpreted as a sharp rise from here. However, judging by the previous movements, we can say that we are very close to the bottom of the bear market in Bitcoin. If the current price level is not a bottom, a last "dump" will be a big buying opportunity. Do not forget that the analyzes made according to such indicators are made for the determination of the general direction of the market and on a long-term basis. Short-term fluctuations are not the subject of this analysis.