Glassnode Sees Signs of Another Bitcoin Rally

One of the on-chain bitcoin metrics is preparing to enter the rally phase, which has historically led to a rise in the price of the cryptocurrency.

The on-chain metric of the difference in net unrealized profit and loss (NUPL) may be a harbinger of a new rally in Bitcoin. This is the conclusion reached by analysts at Glassnode.

For example, as you can see in the chart above, the price rallied in 2013, 2017 and 2021. At the same time, the metric formed from the zone of "euphoria" and "greed" a whole support for the growth of bitcoin.

In the current sample, analysts look for indicators NUPL for long-term investors (those who Hodl Bitcoin longer than 155 days). Glassnode experts note that every time long-term investors find themselves in the zone of "euphoria" and "greed", the price of bitcoin tends to grow not just on a weekly, but even on a monthly scale.

We will remind, earlier in October, bitcoin updated its historical maximum. The price of the cryptocurrency in the BTC/USD pair rose to $67,128 (BitMEX). However, over time, the price of bitcoin nevertheless rolled back and at the time of this writing is $61,675. The capitalization of the cryptocurrency market is fixed at $2.6 trillion.

The anticipation of the rally is supported statistically as well. For example, it turned out that the volume of bitcoin on exchanges fell to a three-year low. This indicates the unwillingness of investors to get rid of assets. Ether stocks are also at two-year lows.

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