Bitcoin (BTC) price has shown a shift in investor sentiment after approaching its recent all-time high. The Directional Movement Indicator (DMI) points to a weakening in BTC’s bullish momentum, suggesting a decrease in buying pressure.
Similarly, while NUPL remains in a positive phase, it reveals a more cautious outlook among holders compared to the euphoric levels seen in previous cycles. Together with BTC’s price chart, these indicators suggest a period of consolidation or minor correction before any potential move to new highs.
BTC DMI indicates recent shift in sentiment
BTC’s DMI chart reveals that its ADX is now at 29.26, down from more than 40 days ago. ADX, or Average Directional Index, measures trend strength without indicating direction.
An ADX above 25 indicates a strong trend, while values below 20 suggest a weak or non-existent trend. With the ADX moving lower from above 40, the strength of BTC’s recent uptrend has weakened.
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DMI do BTC. Fonte: TradingView
The DMI uses two lines, D+ and D-, to indicate trend direction. BTC's D+ currently stands at 20.6, while the D- stands at 24.5. This suggests that sellers are momentarily stronger than buyers.
However, just a few days ago, BTC was in a stronger uptrend, with D+ above 40 and D- around 10, showing that buying pressure was far outweighing selling. While BTC’s price is technically in an uptrend, the balance between buying and selling forces has shifted slightly, with D- rising more than D+.
Bitcoin’s NUPL is far from euphoric levels
BTC's NUPL is currently at 0.529, slightly lower than the 0.546 level reached a few days ago. This decline indicates a modest decline in unrealized profit among holders, reflecting some recent profit taking or a pause in general market optimism.
Despite the decrease, BTC's NUPL remains positive, meaning most holders are still in profit but are adopting a more cautious sentiment.
NUPL is BTC. Fonte: Glassnode
NUPL, or Net Unrealized Profit/Loss, is a metric that calculates the difference between unrealized gains and losses among holders, indicating overall market sentiment.
While BTC's NUPL has fallen, it is still in the belief-denial phase and is currently well below the euphoria-greed level where extreme optimism historically occurs.
BTC Price Prediction: A New All-Time High?
The BTC price chart shows its short-term EMA lines positioned above the long-term EMAs, indicating an uptrend. This alignment suggests stronger momentum recently compared to the long-term trend, often a sign of increased buying interest and positive sentiment, potentially setting the stage for further gains.
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BTC EMA and Support and Resistance lines. Source: TradingView
However, the narrowing gap between the EMAs indicates a weakening of the bullish momentum in the past few days. Should the uptrend resume, BTC could seek new highs above $73,618. On the other hand, the price could pull back to test the support at $65,503; if this level fails to hold, BTC could drop to $62,043, resulting in an 11.4% correction.
The article Bitcoin (BTC) points to new high after recent spike appeared first on BeInCrypto Brasil.
