The "BTC Price and NUPL Daily Chart" shows daily data for Bitcoin (BTC) price and its NUPL (Net Unrealized Profit/Loss) alongside flags that indicate whether the NUPL is in a positive or negative zone. Net Unrealized Profit/Loss is the difference between Relative Unrealized Profit and Relative Unrealized Loss. This metric can also be calculated by subtracting realized cap from market cap, and dividing the result by the market cap. This allows for an assessment of whether investors are currently in a state of profit or loss. The interpretation of the chart and NUPL metric can be as follows: 1. Relationship between BTC price and NUPL: Observe the correlation between changes in BTC price and NUPL. If NUPL and BTC price move in the same direction, this can indicate market consensus. 2. 🟩 Positive and 🟥 Negative NUPL zone flags: Flags help determine when NUPL transitions between positive and negative values. If NUPL is in the positive zone (flag above zero), this indicates that the majority of investors are experiencing unrealized gains. If NUPL is in the negative zone (flag below zero), this means that the majority of investors are experiencing unrealized losses. 3. Changes in NUPL can serve as a market sentiment indicator: During a 🟢 bull market (when prices rise), NUPL will typically be positive, indicating that most investors are in a state of profit. During a 🔴 bear market (when prices decline), NUPL may become negative, indicating that most investors are experiencing losses. This indicator is available in my dashboard at the "Source: View Live Chart" link. Don't forget to follow 👀 me on Twitter, where I post macro reports and early versions of indicators and metrics.

Written by AxelAdlerJr