Bitcoin

when

<ul> 
 <li>Bitcoin’s price action may be guided by two on-chain indicators, Net Unrealized Profit (NUP) and Net Unrealized Loss (NUL).</li> 
 <li>Historically, NUL breaking above 0.5 has signaled potential buying opportunities, especially during bear markets.</li> 
 <li>“It remains to be seen, though, whether these patterns will continue to hold in the current Bitcoin cycle as well,” cautions the analyst.</li> 
</ul> 
<p><strong>Discover a potential Bitcoin trading strategy based on historical trends in key on-chain metrics. Learn when to buy and sell according to expert analysis.</strong></p> 
<h2 id="strong-bitcoin-buying-and-selling-strategy-what-the-indicators-say-strong"><strong>Bitcoin Buying and Selling Strategy: What the Indicators Say</strong></h2> 
<p>An in-depth analysis suggests that Bitcoin’s price movements could be influenced by two on-chain indicators: Net Unrealized Loss (NUL) and Net Unrealized Profit (NUP). These metrics reveal trends in investor sentiment and may signal opportune moments for buying or selling the leading cryptocurrency.</p> 
<h3 id="strong-understanding-nul-and-nup-strong"><strong>Understanding NUL and NUP</strong></h3> 
<p><a href="https://i0.wp.com/en.coinotag.com/wp-content/uploads/2024/03/Bitcoin-NUL-30-MAR.jpeg?quality=58&amp;ssl=1"><img loading="lazy" decoding="async" class="alignnone size-full wp-image-137355" src="https://i0.wp.com/en.coinotag.com/wp-content/uploads/2024/03/Bitcoin-NUL-30-MAR.jpeg?resize=696%2C439&amp;quality=58&amp;ssl=1" alt="Bitcoin NUL 30 MAR" width="696" height="439" srcset="https://i0.wp.com/en.coinotag.com/wp-content/uploads/2024/03/Bitcoin-NUL-30-MAR.jpeg?w=952&amp;quality=58&amp;ssl=1 952w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2024/03/Bitcoin-NUL-30-MAR.jpeg?resize=300%2C189&amp;quality=58&amp;ssl=1 300w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2024/03/Bitcoin-NUL-30-MAR.jpeg?resize=768%2C484&amp;quality=58&amp;ssl=1 768w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2024/03/Bitcoin-NUL-30-MAR.jpeg?resize=150%2C95&amp;quality=58&amp;ssl=1 150w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2024/03/Bitcoin-NUL-30-MAR.jpeg?resize=696%2C439&amp;quality=58&amp;ssl=1 696w" sizes="(max-width: 696px) 100vw, 696px" data-recalc-dims="1"></a></p> 
<p>NUL and NUP track the unrealized profit or loss held by Bitcoin investors. By analyzing the transaction history of each coin, these indicators determine its cost basis (the price at which it was last acquired). If the current price exceeds the cost basis, the coin holds an unrealized profit (NUP). Conversely, if the current price is lower, it represents an unrealized loss (NUL).</p> 
<p><a href="https://i0.wp.com/en.coinotag.com/wp-content/uploads/2024/03/Bitcoin-NUP-30-MAR.jpeg?quality=58&amp;ssl=1"><img loading="lazy" decoding="async" class="alignnone size-full wp-image-137354" src="https://i0.wp.com/en.coinotag.com/wp-content/uploads/2024/03/Bitcoin-NUP-30-MAR.jpeg?resize=696%2C439&amp;quality=58&amp;ssl=1" alt="Bitcoin NUP 30 MAR" width="696" height="439" srcset="https://i0.wp.com/en.coinotag.com/wp-content/uploads/2024/03/Bitcoin-NUP-30-MAR.jpeg?w=952&amp;quality=58&amp;ssl=1 952w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2024/03/Bitcoin-NUP-30-MAR.jpeg?resize=300%2C189&amp;quality=58&amp;ssl=1 300w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2024/03/Bitcoin-NUP-30-MAR.jpeg?resize=768%2C484&amp;quality=58&amp;ssl=1 768w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2024/03/Bitcoin-NUP-30-MAR.jpeg?resize=150%2C95&amp;quality=58&amp;ssl=1 150w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2024/03/Bitcoin-NUP-30-MAR.jpeg?resize=696%2C439&amp;quality=58&amp;ssl=1 696w" sizes="(max-width: 696px) 100vw, 696px" data-recalc-dims="1"></a></p> 
<h3 id="strong-historical-patterns-and-strategy-strong"><strong>Historical Patterns and Strategy</strong></h3> 
<p>According to CryptoQuant author Axel Adler Jr., NUL breaking above the 0.5 level has historically coincided with bear market lows, suggesting potential buying opportunities. Conversely, NUP surpassing 0.7 may indicate market tops and favorable conditions for selling.</p> 
<h3 id="strong-a-word-of-caution-strong"><strong>A Word of Caution </strong></h3> 
<p>While these indicators have shown correlation with past price trends, they do not perfectly predict tops or bottoms. Additionally, their efficacy in the current Bitcoin cycle remains to be fully tested.</p> 
<h3 id="strong-conclusion-strong"><strong>Conclusion</strong></h3> 
<p>The analysis of NUL and NUP offers a potential framework for a simple Bitcoin trading strategy. By monitoring these on-chain indicators, investors may gain insights into prevailing market sentiment and make more informed decisions about buying or selling. However, it’s crucial to remember that past performance is not indicative of future results, and this strategy should be used in conjunction with other technical and fundamental analysis tools.</p>

Bitcoin Price Analysis 30 March: On-Chain Indicators Reveal Buy and Sell Signals

Table of Contents

CO NEWS

Other articles published on Mar 30, 2024

Decoding Central Bank Digital Currencies (CBDCs) - The Future of Money

Mystiko’s $XZK Community Sale goes live on CoinList

Binance Leaders Challenge Nigerian Government in Court for Rights Breach

Koala Coin leaps ahead with potential as DOGE, SHIB, navigate Q2

KuCoin Teases Another Major Airdrop As Users Queue To Claim $10M Rewards

Bali Economy 2024 After Covid-19 Outbreak

Join our free newsletter for daily crypto updates!