NUPL reaches highs entering the Belief - Denial phase since February 2024 when the Bitcoin price reached the $50,000 region again.
In the entire history of BTC this phase indicates potential local tops followed by price expansion, usually during bull markets.
The total supply of Bitcoin at a loss remains in the Distribution region, increasing the market's short-term risk of new price corrections.
The NUPL indicator in an uptrend indicates increased selling pressure, as long-term holders are in profit and may start selling at any top.
However, in relation to historical data there is still room for more expansion in price, pushing the indicator even higher.
The Euphoria - Greed phase has not been reached since the price peak in December 2017, despite BTC seeking new all-time highs in 2021.
The market is in a phase of indecision close to an all-time high, increasing the risk of investors holding the current price base, but with a good premium at play.
Written by G a a h
