Bitcoin NUL Suggests More Downside To Come Before The Bottom
03 Juin 2022 - 9:00PM
NEWSBTC
On-chain data shows the Bitcoin NUL indicator is still below a
value of 0.5, a sign that more downtrend could be in store for the
crypto before the bottom is in. Bitcoin Net Unrealized Loss Surges
Up, But Still Remains Below 0.5 As pointed out by an analyst in a
CryptoQuant post, the cryptocurrency’s price may still be nowhere
near a bottom. The relevant indicator here is the “net unrealized
loss” (or NUL in brief), which tells us about the total number of
coins that are currently holding an unrealized loss. The metric
works by comparing the last selling price of each coin on the chain
to the current value of Bitcoin. If the previous previous of any
coin was more than the current one, then that coin is holding a
loss right now. On the other hand, the current price being more
than the last selling value would imply that the coin is in profit
at the moment. Related Reading | Bitcoin Falls Below $30k As
10k BTC Flow Into Gemini The NUL metric only takes into account the
former type of coins. Another indicator, the net unrealized profit
(NUP), measures the latter category. Now, here is a chart that
shows the trend in the Bitcoin NUL over the history of the coin:
The value of the indicator seems to have been rising recently |
Source: CryptoQuant In the above graph, the quant has marked the
two different zones of the Bitcoin NUL, with the metric value equal
to 0.5 line being the divider between them. It looks like
historically, the price of the crypto has tended to observe the
major bottoms when the indicator’s value has been greater than 0.5
Related Reading | Can FTX Token (FTT) And Parody Coin (PARO)
Join Bitcoin (BTC) As The Biggest Cryptocurrency In 2022? As you
can see in the chart, the NUL metric has observed some uptrend in
recent months. This is because the value of Bitcoin has been
declining during this period, leading to more coins going
underwater. However, despite this recent rise, it seems like the
net unrealized loss’ current value is still well below the 0.5
level. If past trend is anything to go by, Bitcoin may observe
further downtrend in the coming future before the NUL’s value
exceeds the threshold and a bottom is formed. BTC Price At the time
of writing, Bitcoin’s price floats around $29.7k, up 3% in the last
seven days. Over the past month, the crypto has lost 23% in value.
The below chart shows the trend in the price of the coin over the
last five days. Looks like the value of the crypto has gone down
over the last couple of days | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com,
CryptoQuant.com
Quant (COIN:QNTUSD)
Graphique Historique de l'Action
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Quant (COIN:QNTUSD)
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