- A renowned analyst disclosed that the Bitcoin NUPL will transition to the orange zone within weeks.
- He cited that Bitcoin market conditions are similar to the 2015 and 2016 cycles.
- Bitcoin trades at $34,086.31, with a significant 14.70% gain over the past week.
In a recent tweet, CryptoCon, a prominent Bitcoin technical analyst, shared valuable insights on the current state of Bitcoin’s price and data trends. According to CryptoCon, Bitcoin is currently encountering formidable price resistance. However, the data analysis paints a more optimistic picture.
In other words, while Bitcoin currently faces strong resistance on the price side, it is not reflected on the data side.
CryptoCon pointed out that during each market cycle, Bitcoin’s Net Unrealized Profit/Loss (NUPL) indicator tends to move into the “orange” zone, forming the mid-top of the cycle. For context, NUPL is a metric that measures the overall profitability of all Bitcoin holders. When NUPL is in the orange zone, most Bitcoin holders are in profit, which is typically a bullish signal.
Notably, the critical observation is that, according to the technical analyst, the NUPL transition to the orange zone could occur anywhere within the Bitcoin price range of $40,000 to $48,000. With Bitcoin hovering around $34k, it is clear that the transition is yet to occur, the analyst noted.
Furthermore, CryptoCon argued that Bitcoin’s current market conditions are similar to those observed during the 2015 and 2016 market cycles, with similar resistance, support, and all. Drawing from the historical data, the technical analyst noted that it typically took four to six weeks from the current data point for Bitcoin to reach the orange zone on the NUPL chart.
He added, “This means the move could be over in late November or early December,” suggesting the orange zone could be in sooner than expected. In other words, the analyst believes that history could repeat itself and that Bitcoin could be poised for another significant move higher in the next few weeks.
At the time of reporting, Bitcoin trades at $34,086.31, with a significant 14.70% gain over the past week.
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