Bitcoin Price May Soon Witness Selling Pressure from STHs at Higher Levels as NUPL Nears Zero
The post Bitcoin Price May Soon Witness Selling Pressure from STHs at Higher Levels as NUPL Nears Zero appeared on BitcoinEthereumNews.com.
In recent days, Bitcoin has struggled with maintaining its upward momentum, facing increasing selling pressure from holders and subsequently dipping to $27,000. This decline was further accelerated by bearish news from the Federal Open Market Committee (FOMC). However, analysts caution that any forthcoming price surge may be short-lived, as short-term holders (STH) are ready to liquidate their positions should Bitcoin turn profitable, potentially bringing a steep drop following a surge. STH NUPL Approaches Zero According to on-chain analysis firm CryptoQuant, the Bitcoin ship may soon be navigating through turbulent waters as the Net Unrealized Profit Loss (NUPL) metric for short-term holders (STH) ominously approaches zero. The trend of this critical metric offers an outlook of potential market movements, revealing a scenario where short-term holders might soon be compelled to sell, thereby exerting significant pressure on Bitcoin prices. The STH NUPL metric provides the financial behavior and potential actions of short-term Bitcoin holders. When the STH NUPL values above 0, it signals that STHs can realize a profit by selling their coins, given that the current market price surpasses the average price at which they acquired their assets. Conversely, values below 0 suggest potential losses for STHs should they decide to sell, as the current market price dips below their average acquisition price. Recent observations reveal that the STH NUPL is inching closer to zero, currently hovering at -0.024. This scenario suggests that the average acquisition price of assets by the STH cohort is nearly equal to the current market price, indicating a lack of significant unrealized profits or losses for this group. As the Bitcoin price surges and the STH NUPL metric concurrently rises, the market may soon find itself under substantial selling pressure. This level, roaming around the brink of profit and loss, becomes a critical juncture for the…
Filed under: News - @ October 12, 2023 1:20 pm