While there is a sharp gap in Bitcoin between last week and this week, the decline in BTC continues to deepen.
At this point, while BTC has fallen to $ 63,000 levels, it continues to upset investors with its volatile movements.
While investors wonder whether the decline in Bitcoin will continue, CryptoQuant analyst stated that the bull phase in Bitcoin may be over.
The analyst, who used the Bitcoin Net Unrealized Profit and Loss metric (NUPL) in his analysis, pointed out that this metric has experienced a very sharp increase so far.
The analyst noted that this metric, along with the BTC price increase, clearly shows that it is time to take profits, as most smart investors do when markets are overheated.
In addition, the analyst stated that Bitcoin has been in the overbought zone for 3 weeks and warned that a stronger correction may come, according to past data.
Pointing out that this correction will begin before the end of March, the analyst said that the NUPL metric should cool down and fall below the 0.3 level in order to buy BTC again.
“The Net Unrealized Profit and Loss metric (NUPL), which shows a very sharp vertical upward trend, clearly indicates that it is time to take profits, as most smart investors do when markets are overheated
As you can see from the chart, we rarely see NUPL stay above the 0.6 level for very long before a sharper price correction occurs.
At this point, you have been in the “overbought” zone for almost 3 weeks, and considering historical data together, a stronger correction in price is expected.
It took 3 to 6 weeks for these strong corrections to occur. However, since we are not yet in the main bull phase and are still in the halving phase, the strong correction will begin before the end of March, if not this week. The NUPL indicator points us to this.
A stronger BTC price correction should result in a cooling in NUPL. At this point, if you see the NUPL metric falling below the 0.3 level, you can consider accumulating Bitcoin again. “
Bitcoin continues to trade at $63,706 at the time of writing.
*This is not investment advice.
