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The Net Unrealized Profit or Loss (NUPL) metric, which could be an important indicator of the bottoming out of the prices of the two biggest cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), is showing a historical trend. The excitement surrounding the applications for a spot Bitcoin ETF has started to wane in terms of investor sensitivity, and this is also reflected in the price of the asset.
Bitcoin’s Relative Unrealized Profit Declines
According to the latest data from on-chain data platform Glassnode, Bitcoin’s Relative Unrealized Profit metric has reached its lowest level in the past five months, standing at 0.402 at the current price level. This means that more and more investors are incurring losses, which is usually a sign that the price has bottomed out or is approaching it. The price of BTC still represents a significant recovery since the largest cryptocurrency traded below $20,000 since the beginning of 2023.
Similarly, the number of wallet addresses in profit based on the 7-day moving average for the largest altcoin, Ethereum, is also at its lowest level in the past 5 months. This provides signs that ETH’s price is approaching the bottom. Analysts emphasize that the range between $1,700 and $1,577 is crucial for the next breakout or move for ETH. A breakout from the $1,700 range could potentially result in an upward price movement for Ethereum.
What’s Next for BTC’s Price Trend?
The cryptocurrency market has been moving sideways around the $30,000 level for Bitcoin for a long time, following developments related to spot Bitcoin ETF applications.
Indeed, in the first week of September, the U.S. Securities and Exchange Commission (SEC) is expected to provide the first significant updates regarding various spot Bitcoin ETF applications, including the world’s largest asset management company, Blackrock. Experts believe that SEC officials are likely to postpone the decision without making much progress on the initial deadline.
