Bitcoin (BTC) Market Is Not Overheated and May Experience Further Growth – Analyst

Crypto analyst Axel Adler Jr. has provided some insights on the current status of the Bitcoin (BTC) market based on the adjusted Net Unrealized Profit/Loss (aNUPL) indicator.

renowned crypto analyst has shared his insights on the current state of the Bitcoin (BTC) market, using the adjusted Net Unrealized Profit/Loss (aNUPL) indicator to gauge market sentiment and potential price movements.

According to the analyst, Bitcoin’s aNUPL is currently at 0.4, which indicates that investors are sitting on a substantial amount of unrealized gains. This level of market optimism is considered healthy and sustainable, especially given that Bitcoin has been rallying since September 2024, forming a strong bullish structure.

However, an aNUPL of 0.4 is still significantly lower than the peak levels of 0.7-0.8 observed during the previous bull cycles in 2017 and 2021, which typically coincides with investor euphoria and an overheated market. Based on these observations, the analyst concludes that the Bitcoin market is not yet showing signs of exuberance.

BTC Price Poised For More Growth?

A glance at Bitcoin’s daily chart shows that the asset’s price hovered around $100,824 at the time of writing, after a 1.72% decrease over the past day. The Relative Strength Index for BTC stood at 50.43, suggesting that the asset could still handle higher prices before entering the overbought zone, which aligns with the analyst’s bullish outlook.

This positive projection is further supported by the 100-day simple moving average, which remained well below Bitcoin’s price in a classic bullish indicator. In terms of price barriers, Bitcoin faces psychological resistance at the $106,000 price zone, breaking through which could lead to a continuation of the rally towards its current all-time high at $109,114.

However, another rejection at $106,000 would keep the premier cryptocurrency stuck in a consolidation phase that has characterized the past two weeks.

Overall, the long-term outlook for Bitcoin remains bullish, with investors expecting the asset to reach new highs, driven by historical data and the Trump administration’s crypto-friendly stance. Before the bull run concludes, some analysts predict that BTC will trade between $150,000 – $350,000.

Featured image from Unsplash, chart from Tradingview