Bitrabo Editorial
Following the recent downturn in the Japan Stock Market, Bitcoin, the leading cryptocurrency, has been facing significant price fluctuations. Several indicating factors are pointing towards a substantial price drop, sparking concerns among investors.
Possible Bearish Movement Towards $40,000 for Bitcoin
An analysis by Grizzly, a technical and on-chain expert, has suggested a cautionary prediction that Bitcoin could potentially drop to around $40,000 amidst the current bearish trend. This forecast is based on the crucial NUPL (Net Unrealized Profit/Loss) metric, which helps in assessing the balance between unrealized profits and losses.
When the NUPL is high, it indicates a significant portion of investors making profits, potentially leading to sell-offs. Conversely, a low NUPL suggests losses among investors, prompting more buying activity or positive sentiment in the market.
Grizzly has highlighted that the NUPL metric is approaching a level around 0.4, historically significant as a support and resistance level. A drop below this mark typically signals the beginning of a notable bearish trend, possibly indicating a further decline in Bitcoin’s price.
This potential downward movement could see Bitcoin plummet to $40,000 in the short term, as per the analyst’s prediction. However, it is noted that the current price decline is not yet strong enough to definitively mark the end of the ongoing uptrend.
Bitcoin Shows Signs of Recovery
Despite the recent volatility, Bitcoin has shown signs of a slight rebound from its recent lows, rising to $58,531 after touching $56,632. While the overall market sentiment remains bearish, there is still optimism for potential gains, backed by an increase in daily trading volume indicating positive investor sentiment.