The recent drop in Bitcoin's price has led to a cooling phase, reflected in the Net Unrealized Profit/Loss (NUPL) metric, which is calculated as (market cap - realized cap) / market cap. The NUPL's color changes indicate market sentiment, with a value of 0 acting as a threshold. When the price falls below this level, most investors are at a loss, making it an ideal investment opportunity for long-term gains.

On the other hand, the levels of 0.25, 0.50, 0.75, and 1 are significant for selling. In the previous bull market, the 0.75 level was tested four times, indicating peak bull activity and excessive market participation. This is often when investors should consider exiting.

It's also crucial to interpret cooling phases during bull trends correctly. For instance, in 2019-2020, the NUPL surpassed 0.50 before entering a cooling phase, eventually falling below 0, indicating a prime investment opportunity. Currently, the NUPL is hovering around 0.50. Breaking this level could lead to a decrease in selling pressure, while an increase could intensify it. Understanding and interpreting these metrics is key to successful investment strategies.