Bitcoin

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Swing

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<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/new-metrics-hint-at-bitcoin-market-jitters-as-prices-swing">New Metrics Hint at Bitcoin Market Jitters as Prices Swing</a><br></p>
<p style="text-align: justify"><a href="https://en.bitcoinhaber.net/surge-in-cryptocurrency-markets-pushes-valuation-close-to-2-trillion">Bitcoin</a> has recently embarked on a highly volatile journey, stirring investor unease as it displays swift downturns and erratic movements in key market indicators. The <a href="https://en.bitcoinhaber.net/investors-face-losses-in-the-crypto-market-as-liquidations-increase">cryptocurrency</a>‘s performance has raised questions about the future direction of its value, particularly as the Net Unrealized Profit/Loss (NUPL) metric undergoes significant changes.</p> 
<h2 id="sharp-decline-ignites-investor-puzzlement">Sharp Decline Ignites Investor Puzzlement</h2> 
<p style="text-align: justify">Experiencing a 14% fall in just six days, Bitcoin has left investors guessing whether this is merely a temporary regression or a harbinger of a more substantial market correction. The community is abuzz with speculation about the implications of such a drop.</p> 
<p style="text-align: justify">The NUPL, which gauges investor profitability, typically warns of impending price drops when it exceeds the +0.6 threshold. Despite this, the signal can be less reliable during bull markets. Previously, as Bitcoin’s value soared from $19,000 to $60,000, the NUPL remained above +0.6. Recently, the NUPL again breached this level, coinciding with Bitcoin’s climb to over $73,000. However, by March 16th, the NUPL dipped below +0.6, aligning with Bitcoin’s price reduction to $61,678, and the current analysis suggests a possible extension of the downturn.</p> 
<h2 id="investors-seem-keen-to-cash-in-gains">Investors Seem Keen to Cash in Gains</h2> 
<p style="text-align: justify">While some interpret the withdrawal of Bitcoin from exchanges as an accumulation signal, the departure of more Bitcoin from these platforms than the incoming flow points to a different trend. Notably, during a recent pullback from its $73,000 peak, a significant outflow of Bitcoin was noted from short-term holders, indicating profit-taking.</p> 
<p style="text-align: justify">In contrast, the behavior of long-term Bitcoin holders, who have retained their holdings for over a year, suggests a continued belief in the cryptocurrency’s potential, even amidst market fluctuations. Nonetheless, it’s essential to recognize that long-term holder activity does not always accurately predict Bitcoin market trends, with some ultimately partaking in panic selling during extended downturns.</p> 
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/new-metrics-hint-at-bitcoin-market-jitters-as-prices-swing">New Metrics Hint at Bitcoin Market Jitters as Prices Swing</a></h5>

New Metrics Hint at Bitcoin Market Jitters as Prices Swing

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