Bitcoin NUPL Indicates a Sustained Bull Rally, BTC Price Prediction

Bitcoin [BTC] has struggled to maintain an upward momentum since hitting $108,364. Since then, the crypto has faced downward pressure hitting a low of

output: As Bitcoin [BTC] continues to trade within a narrow range, several on-chain metrics provided insight into the apex crypto’s price movements.

After hitting a low of $92,118, BTC recovered slightly to trade at $96,298 at the time of writing, as per CoinGecko. This indicated a 2.44% decrease on daily charts.

However, Cryptoquant analysts seemed optimistic about BTC’s future price movements. According to their analysis, BTC might rally to hit prices ranging from $130k to $160k.

Cryptoquant analyst Baro Virtual highlighted in his analysis that the NUPL indicated that BTC was in its final stages of a bull rally, with a target range of $130k-$160k.

This meant that Bitcoin was nearing the top of its bullish cycle, where prices historically saw a massive rally before peaking.

In this phase, market participants were highly profitable, and speculative buying drove prices up. According to him, the unrealized profit/loss index formed a cup and handle pattern which was expected to push BTC into the target range.

When NUPL forms a cup and handle pattern, it implied that unrealized profits were consolidating with a slight dip suggesting a temporary slowdown in market sentiment before a strong continuation upward.

Moreover, Bitcoin made a successful breakout through the NUPL index’s 365-day MA signaling a potential uptrend in both the medium and long term.

What BTC charts depicted

While BTC struggled to maintain an upward momentum, long-term prospects were still in favor of a strong upswing.

For instance, Bitcoin’s MVRV ratio dropped over the past week to 2.42. Historically, an MVRV ratio between 2-3 is considered bullish and neutral.

Thus, the market was not overheated and buyers found a reasonable balance between risk and reward. This indicated market stabilization and potential price recovery.

Furthermore, Bitcoin’s SOPR declined but it stabilized at 1.01. When SOPR stabilizes around 1, it suggested that BTC tested a break-even point where the market was neutral.

Thus, long-term holders saw it as an opportunity to accumulate BTC sold by weaker hands.

Finally, Bitcoin’s NVT Golden Cross declined to 0.98 indicating a bullish divergence where increasing transaction activity reflected growing confidence in the network activity.

Read Bitcoin’s [BTC] Price Prediction 2024-25

In essence, even though BTC retraced over the past week, long-term fundamentals signaled a potential recovery after the correction.

Hence, these conditions pointed towards a potential trend reversal. If it occurs, BTC could reclaim the $99,790 resistance. However, if bears strengthen, Bitcoin would drop to $95,600.

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