The future is here! The Bitcoin NUPL indicator reveals a key point, $160,000 may be approaching!
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Since reaching $108,364, Bitcoin [BTC] has struggled to maintain its upward momentum. Since then, the cryptocurrency has faced downward pressure, dropping to a low of $92,118. As a result, BTC has been consolidating between $92,000 and $107,000 over the past few weeks.
In fact, as of the time of writing, Bitcoin's trading price is $96,298. The daily chart shows that this marks a 2.44% decrease in Bitcoin's price.
Despite the recent difficulties, stakeholders remain optimistic, believing that this decline is just another market adjustment before another upward trend. Therefore, Cryptoquant analysts cite Bitcoin's NUPL prediction, suggesting that Bitcoin will rise between $130,000 and $160,000.
Cryptoquant analyst Baro Virtual believes in his analysis that NUP indicates Bitcoin is in its final stage, with a target range of $130,000 to $160,000.
This means Bitcoin is approaching the peak of a bull market cycle, where historically prices tend to rise significantly before reaching a peak. At this stage, market participants reap substantial profits, and speculative buying drives up prices.
He noted that the unrealized profit and loss index has formed a cup and handle pattern, which is expected to push BTC into the target range of $130,000 to $160,000.
When NUPL forms a cup and handle pattern, it means that unrealized profits are consolidating and slightly declining, indicating that market sentiment is temporarily slowing down before a strong upward movement.
Additionally, Bitcoin has successfully broken through the 365-day moving average of the NUPL index, signaling the possibility of an upward trend in the medium to long term.
In short, although Bitcoin has experienced a pullback over the past week, the long-term fundamentals suggest a potential recovery after the correction.
Therefore, these conditions indicate that a trend reversal may occur. If a reversal happens, we could see BTC reclaim the resistance level at $99,790. However, if the bears continue to strengthen, Bitcoin could drop to $95,600.
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