The calm before the storm – Could the current correction in Bitcoin (BTC) prices be coming to an end, with a nice bullish recovery? If we compare the situation of two metrics on Bitcoin between 2017 and today, things could indeed be looking good, finally in theory!
A small fall before a big bounce?
Since its new all-time high (ATH), very close to $ 42,000 , our dear Bitcoin has experienced a fairly significant downward correction, bringing it towards $ 30,000 or so.
The question everyone is asking is: is this new Crypto Engine bull run already over , or will it soon start up again?
According to the data aggregator site Glassnode , the current configuration of the king of cryptos would rather encourage optimism , at least if we compare it to the previous uptrend of 2017 .
The first reassuring indicator is the Spent Output Profit Ratio (SPOR). It shows the net profit ratio (positive or negative) of BTC moved on the blockchain, calculated by the change between the buy value (incoming transaction) and the sell value (outgoing transaction) in US dollars.
We can see below that SPOR has now almost returned to neutral territory . In the idea of an upward movement similar to 2017, this would indicate a near end of correction , before a new bullish wave .
No euphoria yet, even if hope is there
Another fairly optimistic indicator for Bitcoin is the Net Unrealized Profit / Loss (NUPL). The Net Unrealized Profit and Loss metric compares the value at the time of inception of a UTXO ( Unspent Trade Exit) against the current BTC price.
This metric is very interesting, because it shows a glance what stage of market sentiment is Bitcoin.
As shown in the Glassnode graph below, the data recorded on-chain indicates that the passage into the so-called “euphoria” zone has not yet occurred , since the NUPL has remained below 0.75 .