The post Bitcoin’s NUPL in ‘Belief’ Stage: Will $80K Be The Peak For BTC? appeared on BitcoinEthereumNews.com.

The Net Unrealized Profit/Loss (NUPL) chart for Bitcoin provided a vivid portrayal of investor sentiment and market phases. As of press time, Bitcoin had re-entered the ‘Belief’ stage. It is a phase characterized by returning confidence and long-term holding as prices rise significantly above the last major peak. The stage is usually followed by the ‘Optimism’ phase and preceded by ‘Euphoria.’ It indicates a strong, continuing belief in Bitcoin’s potential for higher valuations. – Advertisement – The progression into ‘Belief’ is notable because it suggested a majority of holders are in profit but are not yet compelled to sell, betting on further price increases. The position of the NUPL line moving solidly into the green zone supported this interpretation, reflecting a healthy market optimism. However, the exact duration of this phase remains uncertain. Historically, the transition from ‘Belief’ to ‘Euphoria’ has varied significantly, depending on broader market conditions, investor sentiment, and macroeconomic factors. While there is room for growth, the market’s next move is ambiguous. Monitoring the NUPL for signs of shifting sentiment that may precede a new phase, potentially heralding the peak of the current cycle is crucial. Long Liquidations Incoming Bitcoin heatmaps highlighted critical zones where significant price movements could occur due to liquidation events. The first chart showed a clear resistance zone around $77.5k. This could be a target during significant market events like the FOMC announcement. The clustering of liquidation levels just below this price indicates a high concentration of stop orders. If triggered, that could propel the price toward this upper limit. The second chart provided a detailed view of recent trading activities, showing a surge in long liquidations. This accumulation suggested that many traders were positioned for further price increases. They are using high leverage, which increased the risk of a long squeeze. If…

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Filed under: News - @ November 8, 2024 3:26 pm