Bitcoin Bullish Signal? NUPL Creates Golden Cross

CryptoQuant analyst pointed out that this transition pattern has been repeated many times since 2013. The “Net Unrealized Profit and Loss” (NUPL) is an indicator that shows the amount of unrealized profit or loss that Bitcoin investors currently hold. NUPL calculates this unrealized profit/loss by subtracting the realized value (a capitalization model for BTC that takes into account the price at which each coin in the chain was purchased) from the market value. The metric then simplifies that value by dividing it by market value.

When the metric has a positive value, the average investor is making unrealized profits, while negative values indicate unrealized losses dominate the market. Naturally, if the indicator has a value equal to zero, it means that the holders are breaking even now.

BTC observed strong bullish momentum when the 60-day MA broke above the 365-day MA. However, there have been some exceptions. In the chart above, the quantile has marked the relevant points of the trend for Bitcoin NUPL’s 60-day and 365-day MAs. The chart shows that such a crossover last occurred in late 2021, when the bull run of this cycle was at its peak. But after a very short time, the opposite kind of gold canceled the transition and BTC saw only bearish effects. Recently, the MAs of Bitcoin NUPL have once again started forming a bullish crossover pattern. This time, at least so far, the breakout appears to be a suitable breakout, as 60 days sharply rise above 365 days, unlike the previous example, where the first one doesn’t gain much height above the second before it bends back and creates a reverse crossover. If the latest golden cross does indeed come true, then BTC could be preparing for a strong bull rally.